For Apple this has meant the first ever virtual WWDC, iPhone production issues and plummeting sales.
While not selling expected amounts of iPhones translates straight into a bottom line of the quarterly reports, there are other not-so-direct implications too.
This is evident when DSCC has analyzed Samsung's Display division's quarterly guidance. Due to lower iPhone sales, Apple has ordered less of their high-end OLED displays – Samsung no longer makes LCD panels found in iPhone SE, iPhone XR, and iPhone 11 – but due to the contract Apple had to pay a fee for not ordering enough display panels.
According to their information this amount is a whopping $950 million which could have turned Samsung Display's operating loss into profit.
This isn't exactly all about coronavirus since Apple had to pay Samsung Display a slightly lower $750 million fine same time last year.
The parent, Samsung Electronics, is going to post an estimated $7.2 billion in operating profit, a slight uptick from previous quarter and previous year, although revenue went down compared to both instances.
Written by: Matti Robinson @ 14 Jul 2020 14:45
