Reuters is reporting that Apple has reimbursed to Samsung 800 billion won ($683 million) to cover the cost of OLED panels. The move comes after Apple missed an iPhone sales target that the companies had agreed upon.
Apple had agreed to buy a certain number of OLED display panels from Samsung, for use in the Cupertino firm’s iPhone lineup. However, lower than expected sales mean it couldn’t live up to its side of the agreement, so a payment was made during the second quarter of this year.
The information was included in Reuters report on Friday of Samsung’s guidance of a steep plunge in its second quarter operating profit. However, Samsung was able to beat analyst expectations, thanks to one-time gains such as the Apple payment.
The South Korean electronics firm is on track to post year-on-year profit declines for a third consecutive quarter, thanks to falling chip prices due to a supply glut and sanctions by the United States on Chinese telecom equipment maker Huawei Technologies, which is a major Samsung client.
April-June operating profit likely fell 56% to 6.5 trillion won ($5.6 billion), reported Samsung in a regulatory filing ahead of the release of its detailed earnings figures in late July. Revenue likely fell 4.2% from a year earlier to 56 trillion won ($48 billion).