Apple Refunds Samsung After “BAD” Business

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reimbursed Samsung $683 million to cover the cost of OLED panels after it missed a sales target that both companies had agreed upon. 

 

Apple planned to buy a certain number of the OLED display panels from Samsung, but disappointing iPhone sales meant it was unable to live up to the agreement. The payment was made in the second quarter of this year. 

Apple planned to buy a certain number of the OLED display panels from Samsung, but disappointing iPhone sales meant it was unable to live up to the agreement. The payment was made in the second quarter of this year. 

IPhone lost its wide market share due to the current trade war between the US and China.

The figure, quoted by Reuters, came on Friday as Samsung forecast a plunge in its second-quarter operating profits, but one-off gains like the re-payment from Apple helped it beat analyst expectations. 

Samsung’s April-June operating profit likely fell 56 percent to $5.6 billion, this has been the case since their loss with the Samsung note 7. The company revealed in a regulatory filing ahead of the release of its detailed earnings figures in late July. Revenue probably fell 4.2 percent from a year earlier to $48 billion.

 

Image Credit: TechRadar

Samsung is on track to post year-on-year (YoY) profit declines for a third consecutive quarter, mainly due to a combination of falling chip prices because of a supply glut and U.S. sanctions on Chinese telecom equipment maker Huawei, which has become a key Samsung client, but the re-payment meant the company would possibly reduce the company’s loss and may post a profit this year.

The U.S.-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.

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