Apple may owe Samsung enormous after failing to sell enough iPhones

Apple could owe Samsung Display “hundreds of billions of won” in penalties for not purchasing enough OLED screens – found in iPhone XS, XS Max and X – because of lackluster iPhone sales, as per Korean outlet ETNews. That’d be about $90 million in fines, which isn’t a lot to Apple, however could strain on its relationship with the provider.

The Cupertino, California giant demanded that Samsung Display build a factory for the exclusive motivation behind making OLED screens, saying it’d need 100 million iPhone displays a year, sister site ZDNet noted. The weak sales hit Samsung Display hard – making operating benefits to fall from 5.7 trillion won (around $4.9 billion) in 2017 to 2.62 trillion won (about $2.2 billion) in 2018.

It’s unlikely that Apple will pay a money penalty, yet offer Samsung Display new contracts for OLED screens in tablets and notebooks, as indicated by ETNews.

Apple is likewise reputed to move an all OLED line-up for 2020, after a year ago’s budget iPhone XR stayed with the old LCD display.

Samsung declined to remark on the story, while Apple didn’t quickly react to a request for comment.