If the Samsung components in the iPhone X were to be calculated, then for each iPhone X sold, Samsung will be taking home around $110.
Samsung has its high-profile components fitted in the iPhone X – the new OLED screen which is handcrafted for this very model. The company also makes other components that are fitted in the new iPhone X.
The Counterpoint Technology Market Research which was conducted for The Wall Street Journal says that Samsung is also involved in making batteries and capacitors for the new flagship by Apple.
The analysis note says:
Samsung is likely to earn about $4 billion more in revenue making parts for the iPhone X than from the parts it makes for its own flagship Galaxy S8 handset.
This does not seem to be a fair comparison. First, it’s only looking at the money which Samsung earns from its component division and not the profit that Samsung will make after selling the Galaxy S8. Also, as the piece says, it shows predicted sales for these two handsets.
Counterpoint expects Apple will sell 130 million iPhone X units, earning Samsung $110 on each through the summer of 2019, while Galaxy S8’s global sales are expected to be 50 million, earning Samsung $202 each from components such as displays and chips in its first 20 months of sales.
Because Samsung makes significantly more components for its home smartphone than it does for the Apple iPhone, it earns more from each sale. However, since the iPhone X is expected to sell in a higher number, Samsung is taking the dough there too – smart move, isn’t it?
On the same note investment bank CLSA estimates that Samsung is dependent on Apple business and the iPhone maker’s component makes up more than a third of Samsung’s revenue.