Low sales figures for the iPhone 12 mini have left the Samsung OLED division in a difficult position. As part of the deal, Apple can still pay its partner some extra.
Apple and Samsung have long collaborated on the supply of OLED screens. This cooperation is so serious that both sides can impose heavy rules on each other from time to time. Apple’s extra payments are an important example.
There may be another extra payment
The trend of iPhone sales with OLED screens is also of great interest to the company, as Samsung allocates a significant portion of its display production lines to Apple and adjusts the demands of other customers accordingly.
In 2019, Apple paid its partner an extra $684 million because the iPhone XS series fell short of expectations. In 2020, Apple paid another $1 billion for the iPhone 11 series because of low sales.
IPhone 12 mini sales were too low, leading to a 9 percent decline in Samsung Display revenues in January, according to reports. Globally, 53 million OLED panels are supplied, 85 percent of which are owned by Samsung.
The iPhone 12 mini is not expected to attract interest in the coming period, as Apple has reduced its orders to the supply chain. In this case, the losses that Samsung will experience will increase even more. If there are no surprises in sales for 2021, an additional payment for Apple may come up again.