Moscow, June 24 — “News. The economy is” Apple faces a fine of hundreds of millions of dollars for a high enough sales of the iPhone. The company promised Samsung the purchase of a large number of displays, but the weak demand for smartphones does not justify investments by the South Korean giant.
Samsung tries to get Apple to pay compensation for what she bought spelled out in the contract the number of matrices for the iPhone X to XS and XS Max. It is assumed that the cause of the breach of contract were of poor sales of smartphones, and therefore Apple did not buy extra OLED panel.
Samsung Display is the world’s largest manufacturer of OLED panels, occupying about 40% of the global market of OLED displays. Apple signed a contract with the South Korean manufacturer for the supply of OLED panels, requiring the construction of a separate plant for the production of OLED-screens specifically for the iPhone.
California giant was sure that he would need 100 million displays per year, but this forecast did not come true. Despite the successful sales of iPhone X Display, Samsung claims that Apple has not fulfilled the requirement of the contract.
According to the Korean resource ETNews, Samsung Display revenues fell from $4.9 billion in 2017 to $2.3 billion in 2018. To compensate for falling revenues, Samsung Display put Apple the penalty for breach of contract, which led to the reduction of production by 50% compared to expected rates.
The report does not have the exact amount of the requested fine, but we are talking about hundreds of millions of dollars. According to reports in the media, Apple does not agree to pay compensation, and offers South Korean partners other solutions to the dispute. One of them is the supply of OLED panels for other devices, for example, future laptops and tablets.
In the past year, we recall, Samsung has decided not to invest almost billion in a new plant for the production of OLED-matrix. The decision was taken in view of uncertainty of demand in the smartphone market and perhaps the most powerful argument was just low iPhone sales.
Specialists research firm Counterpoint Research see the cause of the reduction in the supply of iPhone is that users are in no hurry to update their smartphones to the new one. The update cycle has increased significantly — now iPhone consumers are changing once in three years, whereas previously the figure was only two years.
According to analysts, Apple was played by several factors: high performance older iPhone models, the program of preferential replacement of batteries, the price increase on the flagship model, the absence of significant innovation.
According to experts, certain difficulties with sales caused the situation in China. Apple has high hopes for the Chinese market, but has faced serious resistance: the slowing world economy, pressure from local Android manufacturers, a trade war with the United States.
According to the research company, release of new iPhone line this year will not change the situation dramatically. However, analysts Counterpoint Research are optimistic — they think the smartphone market in the future will show explosive growth, with the release of the first models of smartphones with support networks of the fifth generation.
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