We all know that the Korean electronics giant Samsung is one of the top display manufacturers around the globe. In the case of its marketing, it made contracts with the customers of the display section. As per that, the customers are bound to purchase a certain quantity of displays in a certain time period, the buyers have to pay penalty otherwise.
The same thing happened to Apple. The Cupertino based giant is also one of the display customers of Samsung and as per the reports, it didn’t reach the minimum purchase limit in this quarter. Now, Apple needs to pay the penalty to Samsung and the amount is nearly $1 Billion.
This is not for the first time. Back in the second quarter of 2019, Apple paid nearly around $684 million to Samsung for the same reason, and this year again. Sources from Apple disclosed to the Display Supply Chain Consultants that the penalty amount will be around $950 million.
Samsung recently posted its earnings guidance for the second quarter of this year and it is expected the penalty amount by Apple is going to convert the operating loss in the display section into profit.
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