According to the MacRumors report, due to lower-than-expected demand for iPhone 12 mini models, Apple is likely to compensate Samsung Display due to insufficient orders for OLED panels.
According to Omdia market data, Samsung’s global small-size OLED shipments in January fell 9% month-on-month to 45 million units. The company attributed the decline to the sluggish iPhone 12 mini sales. An industry insider said that Apple is likely to compensate Samsung for missing OLED panel procurement targets.
“It is not yet certain whether Apple will pay a fine to Samsung Display, but considering its contract history and the sluggish iPhone 12 mini sales, Apple is likely to compensate Samsung.” An industry insider said anonymously.
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Samsung is the only supplier of the 5.4-inch panel used by the iPhone 12 mini, and the iPhone 12 mini is the smallest model in Apple’s 5G-supported iPhone 12 series. If the forecast is accurate, this will be the third time that Apple has had to compensate Samsung for missing its OLED display target. Apple had previously stated that it would purchase a certain number of panels from South Korea’s Samsung.
According to reports, Apple paid Samsung approximately US$683 million and approximately US$950 million in compensation for similar substandard OLED panel orders in 2019 and 2020, respectively.
Samsung is still the world’s leading supplier of display panels for smartphones and has provided most of the OLED panels for Apple’s iPhone in the past few years. According to Omdia’s data, global OLED panel shipments reached 53 million in January this year, and Samsung Display accounted for 85% of them.
Despite a series of reports showing that the iPhone 12 mini is not selling well, it is expected that Apple will retain the smallest 5.4-inch iPhone model size in the iPhone 13 series.
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