According to foreign media reports, Apple may have paid $950 million (about 6.65 billion yuan) in compensation to Samsung Display because it failed to purchase enough OLED panels from the latter to meet the minimum requirements stipulated in the contract.
Citing a report from TheElec in early July, DSCC analysts highlighted an element of Samsung's second-quarter 2020 earnings guidance, namely a one-time payment from Apple to Samsung Display.
Although Samsung's revenue is expected to fall 7% year-on-year to 52 trillion won (about 46 billion U.S. dollars), its high operating profit of 8.1 trillion won (about 6.6 billion U.S. dollars) increased by 23% year-on-year, far higher than the average analyst expectation of 6 trillion won (about 5 billion U.S. dollars).
Apple has not given any explanation, and while this may be due to a combination of factors, the most likely reason is the COVID-19 pandemic, which has affected the vast majority of Apple's supply chain and demand for its products.
In June, market research firm Gartner claimed that iPhone shipments fell 8.2% year-on-year in the first quarter.
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Recommended ReadingLatest update time:2024-11-15 13:58
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