It’s a rather well-known fact that the displays in Apple iPhones are made by Samsung. While Apple has been looking at other display suppliers, Samsung has been supplying to its rival as well. According by 9to5Mac, which cites a report by Display Supply Chain Consultants (DSCC), Apple paid Samsung $950 million for buying less number of OLED displays than required.
The DSCC report looks at the quarterly guidance release issued by Samsung. The South Korean tech giant reported a “one-time gain related to its display business.” The DSCC report cites unnamed sources and claims that Apple paid close to a $1 billion to Samsung.“The Apple payment likely turned what otherwise would have been an operating loss for display devices into an operating profit,” the report explained.
If the report is accurate then it does seem like Apple didn’t sell as many iPhones that it had expected to. The ongoing Covid-19 pandemic situation hasn’t helped as the number of smartphones sold across the world have been less. Apple is also one of the companies whose supply and demand cycle has been hit.
According to a report by CultofMac, Apple and Samsung have a deal where the Cupertino-based tech giant has to buy a certain amount of OLED screen every year. Even if Apple doesn’t buy the agreed number, it has to pay Samsung anyway.
It’s no surprise that Apple has been looking at moving away from Samsung as one of its key suppliers for the iPhone display. While it hasn’t been confirmed, rumours suggest that Apple is looking at China-based BOE Technology Group to make OLED displays for iPhones. However, if that deal does go through then it will be for 2021 iPhones. For 2020 iPhones, it has been suggested that Apple will put OLED displays in all the models that will be launched.