Poor iPhone 12 mini Sales Might Force Apple to Pay Samsung for Unused OLED Screens
Samsung is expected to receive a massive payout from Apple for unused OLED screens. As you might have caught wind through multiple reports, the iPhone 12 mini has performed rather poorly in sales volume compared to the previous three models, resulting in large shipments of OLEDs that will likely be charged to Apple. The Cupertino tech giant will reportedly honor its deal, though.
Apple Paid Samsung Close to $1 Billion in 2020 for Unused OLED Panel Orders
A report from The Korea Herald says that Apple will have to reimburse Samsung due to lackluster iPhone 12 mini sales. Current figures state that Samsung’s OLED shipments dropped globally by nine percent in January to 45 million units. Thanks to this setback, Apple will compensate Samsung monetarily, but the total amount that shall be given to the Korean giant is unconfirmed at this time.
However, it should be noted that on the previous two occasions, Apple paid Samsung $683 million in 2019 and $950 million the following year for unused OLED shipments. According to Omdia, the iPhone 12 mini might not have been in the same league as the other iPhone 12 models in terms of sales, it still managed to ship 14.5 million units globally, revealing that its launch was far from a failure.
Sadly, despite a decent shipments run in 2020, Apple is said to put a halt to the iPhone 12 mini’s production in the second quarter of this year, but it will proceed with an iPhone 13 mini launch regardless. This time, however, we believe Apple to be a bit careful with its own estimates, as it will likely be working with Samsung and LG Display for the majority of OLED shipments.
Apple is still expected to ship a record number of iPhones for this year, and there is a possibility it will break its previous record held when the iPhone 6 and iPhone 6 Plus launched, assuming things remain the way they are right now.
News Source: The Korea Herald