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Beijing Oriental or Apple, which took orders for the iPhone 11, paid Samsung a default fine of $770 million.

via:博客园     time:2019/7/16 17:10:42     readed:213

[TechWeb] After Japan imposed export restrictions on semiconductor materials in Korea, Samsung Electronics became the most affected enterprise, and its production was greatly affected. It was rumored that Apple would cancel Samsung's OLED orders. Recently, it has been reported that Apple has cancelled more than 100 million exclusive OLED screen orders. Samsung claims for production costs, and Apple has paid more than $770 million in compensation.

However, why Apple cancelled the order is uncertain. It is reported that Apple began to consider getting rid of Samsung's restrictions and introducing more OLED screen suppliers in the future because of the huge liquidation damages paid to Samsung. Among them, Beijing Oriental will be the main target.

Before the launch of the iPhone X in 2017, all of Apple's iPhone models used LCD screens, mainly from LG, JDI, Samsung and Sharp. Starting with the introduction of OLED screens from the iPhone X, Samsung became Apple's sole supplier because of its leading edge in OLED.

The cancellation of Samsung's orders is also related to Apple's long-standing dual-supplier strategy and market environment. In terms of core components, Apple has always adopted a dual-supplier strategy. If Apple is constrained by a single supplier, it is often unable to flexibly adjust its supply, capacity and agreements. Currently, both screen prices and factory capacity and agreements are constrained by Samsung.

It is reported that Apple will introduce a new OLED screen supplier to the next generation of iPhone products, which is Beijing Oriental. Several industry insiders said this meant that the new iPhone 11 released in the second half of this year might be used in Beijing Oriental's panel products.

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