Apple will have to pay a forfeit to Samsung due to falling sales of iPhone 12 mini
Apple may be ordered to pay a multimillion-dollar penalty to Samsung due to falling demand for the iPhone 12 mini. Writes about this 9to5mac. The reason lies in reducing OLED displays produced by the Samsung Display division for smartphones’ production.
In March, the media reported a decrease in demand for the iPhone. Apparently, the least popular is the iPhone 12 mini. According to Nikkei Asian Review, Apple will cut production of the model by 70% already in the current half of the year, and the total volume of production of smartphones of the iPhone lineup will decrease by 20%.
Several experts, speaking with the Korea Herald, said that the low popularity of the iPhone 12 mini has led to a decline in demand for OLED displays. Compared to the same period in 2020, shipments fell by about 9%. This threatens Apple with a new fine for non-compliance with the terms of the contract with Samsung Display.
The fact is that Samsung Display built a separate factory at Apple’s request, designed to produce OLED panels for the iPhone. The company claimed that it needed at least 100 million units of product annually. The IT giant’s forecasts did not materialize, which now leads to multi-million dollar payments for non-compliance with the terms of the contract.
For example, in 2019, Apple paid Samsung a forfeit of $ 683 million. In 2020, the situation repeated itself, but the exact amount of the payment is unknown. According to 9to5mac, the amount then ranged from $ 745 to $ 950 million.
