Samsung could make More Profit from Apple’s iPhone X than Galaxy S8

It is known that the OLED displays used in the making of iPhone X are produced by Samsung. According to a report by The Wall Street Journal, the tech giant Samsung could make $110(around £83/AU$140) from each iPhone X that Apple sells.

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According to an analysis by Counterpoint Technology, In the first 20 months of its debut, Apple’s iPhone X is going to sell around 130 million devices. Considering Samsung earns $110 for each iPhone X Apple sells, the company will make $14.3 billion when iPhone X goes on sale. The same journal also stated that Samsung sold 50 million Galaxy S8 devices in the 20 month period after its debut. Samsung made $10.1 billion(£7.6 billion/AU$12.9 billion) during this period which will be $4 billion less than the profit it made from its own device.

Apple needs Samsung for the supply of some of the hardware components(which only Samsung produces). Samsung is the only company that manufactures OLED displays, DRAM chips and NAND flash and it is the only company that meets the needs of Apple in terms of supplying a vast amount of components. The manufacturing and supplying of these components constitute 35% of the company’s revenue.

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Even though there are other companies that can manufacture the OLED displays, all those companies cannot afford to produce the numbers that Apple needs. It is a known fact that Samsung is the biggest competitor to Apple in its industry. It is great to see that these two tech giants are relied on each other, despite the friction between them. In the meanwhile, the two companies have to maintain the trust until Apple produces its own OLED displays or seek help from other companies.

iPhone X which is available in two storage configurations – 64GB for $999(Rs 89,000), and 256GB for $1,149(Rs 102,000) will make its debut on November 3rd. The pre-orders will start on October 22nd.

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