Apple Rival Samsung Earns $110 on each iPhone X Unit
Apple and Samsung have been fierce rivals since the boom of the Smartphone era. While Apple started the revolution with the iPhone, Samsung in the past few years has been head on with it’s Galaxy S and Note series. But in background, the two have been well known to work with each other for the manufacturing of multiple mobile components.
Before Apple launched the iPhone X last month we had seen multiple trustworthy reports suggesting that Samsung has won the deal for making OLED panels. This itself rakes in Billions for Samsung. The company’s semiconductor division brought in $7.2 billion in operating profit in what analysts are calling a “memory super cycle,” which is expected to continue into the third quarter of the year. The major customer is likely Apple, which has reportedly ordered tens of millions of Samsung display panels for its upcoming iPhone.
An analysis conducted by Counterpoint Technology Market Research for The Wall Street Journal finds Samsung is likely to earn about $4 billion more in revenue making parts for the iPhone. Apple is expected to sell 130 million iPhone X units, earning Samsung $110 on each through the summer of 2019. At the same time, Samsung’s own handsets like the S8 too have sold tens of millions of units worldwide. Even the latest entrant the Note8 has been reported to be in high demand. The firm estimates Galaxy S8 sales to total 50M in that period with Samsung earning $202 from the parts in each unit
Apple ships close to 200 million iPhones every year so the combined supply volume of 160 million OLED panel units means that Samsung is going to fill almost 80 percent of Apple’s entire demand. Apple will look to reduce its supply-chain reliance on Samsung, according to industry analysts, and is working to diversify OLED production by 2019 at the latest. There have also been reports suggesting that Apple is working on making it’s own OLED panels in the future.
Apple sued Samsung over alleged patent infringement, accusing the Galaxy S of ripping off the iPhone’s design. Samsung countersued Apple with its own patent infringement allegations. The lawsuit remains unresolved till date.