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Due to falling sales of iPhone 12 mini, Apple will have to pay a penalty to Samsung
Apple may be ordered to pay multimillion-dollar penalty to Samsung due to falling demand for iPhone 12 mini. Writes about this 9to5mac. The reason lies in the reduction in the order for OLED displays produced by the division of Samsung Display for the production of smartphones.
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 is going to 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 due to this will decrease by 20%
A number of experts in a conversation with the Korea Herald say the low popularity of the iPhone 12 mini has led to a decrease in demand for OLED displays. Compared to the same period in 2021, supply volumes fell by about 9%. This threatens Apple with a new fine for non-compliance with the terms of contract with Samsung Display.
The fact is that Samsung Display built a separate factory at the request of Apple, designed to produce OLED panels for the iPhone. The company claimed that it needs at least 100 million units of product annually. The forecasts of the IT giant did not materialize, which now leads to multi-million dollar payments for non-compliance with the terms of the contract.
For example, in 2021, Apple paid Samsung a forfeit of $ 683 million. In 2021, 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.