Apple paid Samsung USD 683 million after lackluster iPhone sales

Last month reports started circulating claiming Apple was fined a significant amount for failing to meet its sales figures for its OLED smartphones. These reports turned out to be true and now it appears that Apple has reimbursed Samsung a massive 800 billion won or USD 683 million as it failed to honour its agreement to buy a certain number of display panels.

Torrid iPhone sales saw Apple needing to fork out USD 683 million and as per a report by Reuters, Samsung’s second-quarter forecast dipped but certain gains like the Apple payment helped it best analyst estimates.

The South Koran company’s April to June operating profit estimated to fall 56 per cent to 6.5 trillion won. This information was shared by the company in a regulatory filing ahead of the release of its earnings figures in late July. Estimated revenue fell 4.2 per cent from last year to 56 trillion won.

Samsung is expected to post a year-on-year profit decline for a third consecutive quarter because of its falling chip prices and also due to the US sanctions on China’s Huawei, which has become a major Samsung client.

As per a report by MacRumors, “The US-China trade war is also impacting global chip and smartphone markets, with rising tariffs hitting demand for electronics. In a striking example of the ongoing feud between the two countries, Seoul also cut its annual economic growth target to a seven-year low as exports continued to slump.”