Apple's iPhone sales may have cratered in Q2 2020 as the company pays Samsung $950 million in compensation

Apple has reportedly paid Samsung nearly $1 billion in compensation for not meeting order targets for OLED displays from the company.

The revelation comes from analysts Display Supply Chain Consultants (DSCC), who claims the mysterious line item in Samsung’s financial, who reported a one-time gain related to its display business, was in fact a $950 million bump after Apple compensated Samsung for failing to meet order numbers.

$950 million likely represents millions of iPhones unsold, likely due to the impact of the COVID-19 pandemic on smartphone consumption in Q2 2020. Apple is estimated to have sold around 40 million iPhones in Q2 2019, and it seems likely Q2 2020 will be significantly lower, not just due to the pandemic, but also the general trend to longer replacement cycles and slower iPhone sales.

Apple is known to have previously made a $683 million payment to Samsung in July 2019 after missing OLED display purchase targets due to poor sales in China and other parts of the world in the 2018 holiday quarter.

Apple will announce its FY Q3 2020 (CY Q2 2020) results on the 30th of July, but the company stopped reporting unit sales some years ago, meaning the exact sales may never be revealed.

via Macrumors