Apple paid Samsung 800 billion won ($683 million) during the second quarter of the year. The payments covered the cost of display panels after Apple missed a sales target both companies had agreed on.
The cash influx represents a rare bright spot during a three-month period in which Samsung’s profits are forecast to plunge an overall 56%.
We wrote about the payments Apple owed Samsung back in June. At the time, it was reported that Apple owed Samsung “hundreds of millions of dollars.” This was because Apple agreed to buy a certain number of OLED displays per year.
Due to the slump in iPhone sales, Apple has not bought as many as promised.
A steep decline in profts
Samsung’s Electronics forecasts a steep decline in its Q2 operating profits. Part of the reason for this is the U.S. vs. China trade war. While that issue may now have been resolved, it nonetheless had a big impact on global chip and smartphone markets.
Overall, operating profits for the April through June quarter are projected at $5.6 billion. Samsung will release more detailed earnings later in July.
According to Samsung, Apple’s payment to its Samsung Display division was reflected in its operating profit. This may have helped the company outperform some analyst expectations.