A Samsung Display executive flew to Apple headquarters to warn of a cut iPhone Panel orders and the threat of patents

A Samsung Display executive flew to Apple headquarters to warn of a cut iPhone Panel orders and the threat of patents

Tech Highlights:

  • Samsung expected at least 160 million OLED panel orders from Apple in 2022, but at the quarterly results press conference yesterday Tim Cook advised that the company is going through a supply chain bottleneck that would directly affect the number of iPhones shipped going forward as well as the projected revenue. The Samsung Display head’s visit to Apple’s HQ is not disputed by Samsung, but they just commented that he hasn’t met with Tim Cook there. According to Korean industry sources, CEO Choi asked that Samsung’s order contract remain intact, while Apple cuts the orders towards its other display suppliers, especially BOE.

  • After learning of Apple’s plans to slash iPhone production orders due to supply chain issues, Samsung Display CEO Choi Joo-sun reportedly flew to the United States to meet with Apple personnel at the company’s headquarters in California and warn them against backing out of the contracts. According to industry sources, despite Apple’s stated intention to reduce iPhone production volume forecast from 220 million to 185 million units this year, the Samsung Display CEO has tried to persuade Apple CEO Tim Cook to abandon the production cut plans and has done everything possible to ensure that the contract obligations with Samsung are met.

According to a Korean display industry official, “Samsung Display has warned through various channels that it may sue Apple for a patent against a product containing a competitor’s OLED panel. Daesang seems to have the Chinese BOE in mind.” Now, what exactly patent infringement does Samsung have in mind remains to be heard, but it was already in a big patent litigation fight with Apple a few years back and the team from Cupertino is probably unwilling to go through those motions one more time.

Also, when the iPhone X didn’t sell as well as Apple hoped it had to reportedly pay $770 million compensation to Samsung for unfulfilled contractual obligations, so that may tip the scale in Samsung’s favor this time around as well.

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