According to a study announced on Monday, Samsung is making $4 billion more in revenue from iPhone X parts than from the parts it makes for its own Galaxy S8.
This analysis conducted by Counterpoint Technology based on based on the expected revenue of the iPhone X after 20 months from the official launching date (November 3).
The reason that CounterPoint picked this time is because the total revenue of a smartphone (which is often counted after 20 months of its debut).
Counterpoint expects that Apple will sell 130 million iPhone X units, each of which will bring Samsung $110 until the summer of 2019. Meanwhile, Galaxy S8’s global sales in the same period are expected to be 50 million, from each of its components Samsung will earn $202 in its first 20 months of sales.
According to S & P Global Market Intelligence, Apple and Samsung are expected to be one of the most profitable companies in the world in 2017. Namely, Samsung will earn billions of dollars when being the sole provider of flash NAND memory and NAND chips to Apple. In the other hand, Apple will hope to reap benefit from selling iPhone 8 and iPhone X.
In reality, the co-operation between these arch rivals appeared to be over a decade ago when the grandson of Samsung founder- Lee Jae Yong negotiated with Steve Jobs about providing Flash memory for iPods.
The long-term relationship between two tech giant has strengthen in recent months. However, this is because the demand of components of the new iPhone has surprisingly risen. Samsung is one of the few semiconductor manufacturers that have ability to provide a large amount of flash NAND memory. Moreover, Samsung is also the sole manufacturer of flash NAND to Apple.
At meetings, Samsung executives are known to tell attendees who pull out iPhones: “It’s OK. They’re our best client” .
Samsung employees often refer to Apple with code names. One of the most popular is “LO,” short for “Lovely Opponent”.
However, the business relationship of two companies also has risen and fall. In 2011, Apple sued Samsung for smartphone copyright infringement. The legal battle has still lasted since CEO Steve Jobs in office, although these tech giant have often co-operated.
An analyst named Ming-Chi Kuo told that Samsung “completely controls” the supply of OLED panels to Apple. This is one of important factors that make iPhone X have a quite high cost- at least 999USD. In the future, Apple has new strategies to encourage other providers such as Sharp and Japan Display supply OLED screens for it. In addition, Apple also finds alternative NAND flash sources.