Although devices like the Galaxy S8 and Note 8 are officially Samsung’s response to the Apple’s next-gen phone, the South Korean tech giant will nonetheless do quite well from the success of the iPhone X.
How well? According to a new report, Samsung will earn roughly $110 for every iPhone X that Apple manages to sell.
The reason? The Super Retina OLED display in Apple’s upcoming high-end iPhone. Samsung is currently the only OLED manufacturer for Apple, although it is likely that Cupertino will expand its list of OLED suppliers for future iPhones. In addition, Samsung also builds the capacitors and battery for the new device.
Research carried out by Counterpoint Technology Market Research suggests Samsung is likely to make around $4 billion more in revenue making parts for the iPhone X than it does from the parts it manufactures for the Galaxy S8 handset.
Counterpoint claims Apple will sell around 130 million iPhone X handset in total. A previous report claimed that, despite being Apple’s most expensive iPhone in history, the high-end components Apple is using for the new handsets means that the company will make less money than on previous devices.
In Samsung’s most recent quarter, profits rose 72 percent — in large part due to Apple’s orders for components for the next-gen iPhone models. With Apple looking to roll out new OLED handsets for next year’s refresh, Samsung is also increasing its investment in OLED manufacturing.
Source: The Wall Street Journal
Luke Dormehl is a U.K.-based journalist and author, with a background working in documentary film for Channel 4 and the BBC. He is the author of The Apple Revolution and The Formula: How Algorithms Solve All Our Problems … and Create More, both published by Penguin/Random House. His tech writing has also appeared in Wired, Fast Company, Techmeme and other publications.
5 responses to “Samsung reportedly makes $110 for every iPhone X Apple sells”
I just looked at iFixIt’s tear down of the iPhone 8/8+ and there’s nothing inside those that Samsung makes, so I don’t think Samsung’s making all that much other than the screen, which we already know about. LG is ramping up their OLED production for next year. RAM? NOPE. NAND? NOPE. They are using Hynix and Toshiba, hence whey Apple bought into the deal to acquire Toshiba memory unit with Hynix, Kingston, Bain, etc. Apple’s relying less and less with Samsung for iPhones.
They are talking about the iPhone X.
Not the iPhone 8/8+.
I’m well aware of that, but they are basically the same guts inside, other than the screen, facial recognition and the front facing camera. Right? The chips inside are identical.
I remember when everyone was predicting 120M iphone6s’s (increase 6 awesome sales) then had to scale back by half ..same will happen to X with price and notch.. They estimate 130M safe to say thy will sell 65M
One has to consider the very real possibility IPhone sales will decline a lot for two years straight no matter what Apple does.
Its OLD tech at this point and its replacement THE WATCH failed