Apple reportedly paid Samsung $950 million for missing OLED panel purchase target

Apple might’ve paid a penalty of around $950 million to Samsung Display for failing to purchase enough OLED panels to meet its contract, according to a report from Display Supply Chain Consultants, spotted earlier by MacRumors. The reported payment could mean that Apple didn’t meet projected iPhone sales, as many of the tech giant’s retail stores have been closed as a result of the coronavirus pandemic, so it didn’t order enough OLED panels from Samsung.

Samsung’s recently-released guidance for revenues and operating profit for the second quarter of 2020 showed that it had surpassed expectations for operating profits, according to the DSCC report. The sales were driven by businesses requiring more server memory chips to accommodate the working-from-home surge amid the pandemic. 

Earlier this month, Samsung saw a small drop in Q2 sales despite the one-time gain. Apple is reportedly set to announce its Q3 earnings at the end of the month.