What you need to know
- Samsung wants Apple to pay a penalty for not ordering enough OLED displays for the iPhone.
- Instead of a fine, Apple has suggested a new deal that could include it ordering OLED panels for the iPad and MacBook.
- The two sides are still discussing a deal and no agreement has been reached yet.
When Apple began manufacturing the iPhone X, it turned to Samsung for the OLED panels found inside the redesigned smartphone. The two companies struck an agreement that would see Samsung supply its panels for future iPhones as well, but after iPhone sales slumped resulting in Apple ordering less OLED panels, Samsung now wants Apple to pay a fee.
First reported by Korean outlet ETNews, Apple and Samsung are in the midst of hashing out this ongoing dispute. Samsung reportedly wants Apple to pay a fee for not meeting minimum order requirements. That's not surprisng given its display division saw its earnings drastically fall from $4.9 billion in 2017 to $2.3 billion in 2018.
Apple has pitched Samsung alternatives instead of paying a fine that would come out to hundreds of millions of dollars. One of the suggested options would be Apple committing to buying more OLED panels from Samsung for future products including tablets and notebooks.
Apple and Samsung have not reached an agreement so far, but this could very well mean OLED displays are coming to the iPad and MacBook sooner than expected.
Apple has explored the option of adding OLED panels to other products, but given how expensive they are, it opted to stick with traditional LCD panels for the time being. This latest snag though may expedite things which is all the better for consumers.