Upon reading the title of this news, you must be thinking "why". But it seems that Apple had to pay Samsung a nice chunk of money as a penalty. Sources claim that Apple had to pay out a hefty USD 950 million (~RM4.06 billion) for not buying enough OLED panels in the Q2 of 2020.
According to Display Supply Chain Consultants (DSCC), the one-time payment turned what should have a loss for Samsung in terms of operating costs in Q2 2020 into operating profit. But why did Apple have to pay a penalty? As you may have figured out, Apple has a contract to buy OLED panels from Samsung and there's a minimum volume involved in the contract. It's quite likely that by not fulfilling that minimum purchase order, Apple became liable for contract penalty.
Image from DSCC
Despite the good news on that end, DSCC reported that Samsung's revenue for Q2 2020 saw a dip of 11% compared to last year. Specifically, the company's revenue fell by USD 3.7 billion (~RM15.8 billion) year-to-year for Q2 2020. This drop in revenue can mostly be attributed to poorer market performance due to disruptions resulting from the COVID-19 pandemic.
It's funny how Samsung ended up making an operating profit in this way. At the least, it would seem that Q2 2020 isn't a disaster for Samsung. The company will probably have a strong Q3 with Samsung Unpacked coming soon, but we'll have to see if that happens. For now, do stay tuned to us on TechNave.com for more news and updates like this.
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