Samsung Display has asked Apple to pay a fine for not meeting the company’s minimum order requirements for iPhone OLED screens, according to a report from Korean news outlet ETnews.
Samsung is enforcing these fines because its profits have dropped from $4.9 billion USD (roughly, $6.4 billion CAD) in 2017 to $2.9 billion (roughly, $3.8 billion CAD) in 2018.
Profits dropped in part because the display manufacturer sold fewer screens due to unfulfilled contracts.
Apple is legally required to pay the fine, but it’s very rare for a parts manufacturer to enforce penalties like this, according to AppleInsider.
One rumour that’s circulating is that Apple has offered to order more OLED panels for its other products like the MacBook and iPad instead of paying the fine.
After a tough Q1 where iPhone sales declined by 15 percent, Apple hopes to level out smartphone sales in the second half of 2019.