There’s probably nothing more humbling than cutting a check to your competitor. But, when it comes to parts for smartphones and other things in industry, it is pretty common practice, especially when large volumes are ordered but unused.
That’s where Apple finds themselves today after sending rival Samsung some $USD 684 for OLED screens it didn’t sell.
Apple’s weaker-than-expected sales of OLED screens on the iPhone X and iPhone XS is what led to the big charge being levied against the Cupertino company but, as Reuters points out, that huge sum doesn’t help Samsung salvage its recent business performance which has not met expectations in general because of slowing sales of smartphones and slower consumption of the component parts that the company supplies.
Apparently Apple's iPhone XR, which uses an LED screen, is the real hot seller right now in the iPhone lineup though that might be largely due in part to its lower price point. It is also hard to tell if the recent trade controversies with Huawei and the United States have had a negative impact on iPhone sales but, since that issue was somewhat resolved, it doesn’t seem that will be an ongoing issue for the company. Of course, all of this is really interesting coming on the heels of Samsung’s chief executive saying that he thinks smartphones will be largely obsolete in the next decade.
That’s all well and good but we’re pretty sure his company is banking on them being pretty relevant for the immediate future and beyond. Naturally, if the trade war reignites and impacts smartphone sales, this could all change but so far it looks like OLED screens will have to prove their worth in the marketplace and that probably involves lowering prices in some way.
What do you think? Are smartphones going the way of the dinosaur? Did the trade spat between the US and China impact Apple’s sales? Let us know your thoughts in the comments.
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[Reuters]
