Samsung set to make over $100 for each iPhone X sold
The iPhone X was announced at an event last month at Apple’s new headquarters, and we are nearing the launch of the latest “revolutionary” device from the Palo Alto-based company. However, a new report has been released which gives a look at the cost of the different components found within the upcoming device, and reveals some interesting tidbits.
The iPhone X with a new OLED display from Samsung
For years, Samsung and Apple have been going back and forth in the smartphone market, constantly trying to one-up the other, while also keeping ahead of the rest of the competition. This battle has even extended to the courtroom in a series of lawsuits regarding patent infringement, which Samsung has had to pay Apple a sum of $399 million. That case is still ongoing, as it was reported that Samsung is taking the case to the US Court of Appeals to reduce or remove the damages needed to provide to Apple.
Now with the iPhone X on the horizon, a teardown of the components being used reveal that Samsung is providing Apple with 2 of the largest components – the new display, and the battery. According to the report, Samsung will earn $110 for every iPhone X sold thanks to the OLED display. With market estimates pointing to Apple selling more than 130 million units, Samsung stands to make a pretty penny from Apple’s latest and greatest.
In fact, due to the sales estimates, Samsung is said to be making more off of providing the display and other components to Apple than it does from selling the Galaxy S8 lineup. There are some questions here though, as the estimates only look at “money earned by Samsung’s component division”, and not Samsung as a whole.
One interesting fact that may lay claim to the fact that Samsung needs Apple more than we think due to the fact that it has been estimated that the orders for iPhone components “make up more than a third of Samsung’s revenue”. That’s definitely an interesting way to look at things, but it seems that in the end, Samsung and Apple need one another more than anyone could have really though.
Let us know what you think about this latest report in the comments below, and if the numbers actually surprise you.
[9to5Mac]