Apple’s reliance on Samsung for iPhone X components is quite large, as the Korean company is going to make billions of dollars from its customer and main rival.
According to a recent report in the Wall Street Journal, the Korean tech giant will apparently earn $4 billion USD more in terms of revenue by making iPhone X parts than making its own Galaxy S8 parts. The report cited research from Counterpoint Technology, which based the prediction on the next 20 months after the premium Apple device goes on sale next month.
Counterpoint expects Apple to sell 130 million iPhone X units through the summer of 2019. Samsung will make an estimated $110 on each iPhone X sale — that’s a total of more than $14 billion for the South Korean parts maker.
The study assumes that the largest share of a flagship’s sales comes in the first two years of availability. It also appears that the study manufacturers gave the Galaxy S8 a head start, and longer period of sales — the iPhone X won’t ship until November, and the Galaxy S8 has been available since April.
Also not included in the report is income that Samsung or Apple will earn as a result of the sales of the devices, as it only encompasses earnings from manufacturing. Also not included are other devices from 2017 like the Galaxy Note 8, or the iPhone 8.
The earnings prediction will no doubt be refined once the iPhone X launches and teardowns appear. The two companies look to be forever interlinked, however. Samsung wants to retain Apple as a customer, their best, while Apple needs the production capacity of Samsung to meet demand for its devices.
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It might be more profitable for Samsung to discontinue the production for their own mobility division and start working for Apple as a component supplier
And other companies, don’t forget they make comments for them as well. Making complete units has always been a risky venture. The safest bet is to make comments everyone needs at a low price, that way, no matter how the market goes you are assured profits. They do that, but they are so deep into other ventures, they wast tons of their profit. form appliances to phones, they aren’t making much money in any of them. its their chip and screens that make them decent profits.
ah man, now i don’t want to buy the x lol
iPhone X is half made by Samsung from now on. Tim criticized OLED so much a few years ago and now what. Apple begging Samsung for lower price for OLEDs. How pathetic. Thats how margin-greedy tech company ends! Outsourcing everything for lower costs. Ridiculous stratrgy.
You do realize that Samsung pretty much only make the Display and RAM ?