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Apple to Make Another Payment to SDC Making Up for Order Deficits

Samsung Display Co. is likely to receive compensation from Apple Inc. over a shortfall in OLED panel orders, according to industry insiders. Samsung Display's worldwide small OLED shipments in January dropped 9% sequentially to 45 million units, according Omdia, which added that the decline was prompted by sluggish sales of Apple's iPhone 12 mini.  Apple reportedly adjusted target production of the iPhone 12 series to 75 million units for the first half of this year, which is about 20% lower than its previous target for the iPhone 12 mini. Samsung Display is the sole supplier of a 5.4-inch panel for the iPhone 12 mini, the smallest model of Apple's 5G-supporting iPhone 12 series.

Industry observers are now predicting that Apple may once again have to pay Samsung a hefty penalty for not meeting the minimum order quantity. Apple reportedly paid an estimated $684 million in 2019 and $1 billion in 2020 to Samsung Display for below-par OLED panel orders. Omdia reported global OLED panel shipments reached 53 million units in January, and Samsung Display accounted for 85 percent of them. 
 

Source: Yonhap