Such is Apple’s reliance on Samsung for iPhone X components, the Korean company is going to make billions from its customer and main rival.
Even though the iPhone X costs $1,000, it’s unlikely to be a flop. This is an iPhone after all, and one that’s meant to be the future of Apple’s smartphone. Slow iPhone 8 sales are being linked to people waiting for iPhone X instead. That’s a very good sign for the coming demand, which will far outstrip supply if production delays are to be believed.
Apple isn’t the only winner if the iPhone X sells well, though. Samsung is set to profit hugely from the handset. We know that every iPhone ships with Samsung components inside, but the iPhone X will be fitted with a Samsung OLED screen, NAND flash memory chips, and batteries and capacitors from Samsung affiliates.
As MacRumors reports, an analysis carried out by Counterpoint Technology on the bill of materials for the iPhone X found Samsung will make $110 per handset. With Apple projected to sell 130 million iPhone X smartphones by Summer 2019, Samsung will receive billions in revenue from its sale.
The analysis goes on to suggest Samsung will make more from iPhone X than from its own Galaxy S8. Samsung is thought to earn $202 per S8, but sales are only expected to reach 50 million units. So while the revenue per handset is higher, sales will be far lower than the iPhone X. In the end, Samsung wins regardless from an earnings point of view.
The earnings prediction will no doubt be refined once the iPhone X launches and teardowns appear. The two companies look to be forever interlinked, though. Samsung wants to retain Apple as a customer, their best customer, while Apple needs the production capacity of Samsung to meet demand for its devices.