Skip to content

Samsung could make more from Apple’s iPhone X than its own Galaxy S8

Despite the pair existing at positions number 1 and 2 at the top of the smartphone market, Samsung is likely to be pretty chuffed with the projected popularity of Apple’s forthcoming iPhone X – they stand to make over $4 billion in revenue in the first 20 months of release of Apple’s new device.

The analysis was done by research outfit Counterpoint Technology, which chose the time period on the idea that the majority of the device’s sales will land during this time. Specifically, it’s believed that Apple will sell 130 million iPhone X devices over this time.

The report notes that Samsung is set to make $110 on each iPhone X sold, while it makes $202 on each Galaxy S8 – it’s own device.

However, the number of iPhone X devices predicted to sell pretty much blows out the water the predicted 50 million units sold of Samsung’s Galaxy S8 and would mean Samsung actually makes more from the sales of Apple’s device than it does its own.

And although the pair might be seen as bitter rivals on the outset – they mutually benefit from Apple’s success. Apple sells the iPhone X at a premium, and in turn, Samsung charges Apple a premium for its OLED displays due to shortages in the material’s availability.

However, the rivalry might return to the fore one day. Apple’s reliance on Samsung could be seen as worrying when Samsung is the only company capable of supplying the type of OLED displays the iPhone X requires – as well as its NAND chips, which Samsung also supplies.

The solution would be to set up alternative sources – which reports suggest they are. Apple is currently looking to take over Toshiba’s NAND chip arm, while also reportedly investing in LG Display to set up an alternative source of OLED displays.

But, whether Apple will ever truly be able to break away from its closest rival, is yet to be seen.

The iPhone X is available to pre-order from Apple on Oct. 27 before its official release on Nov. 3.

Source: WSJ