Frenemies: Samsung to earn more from iPhone X than from Galaxy S8 parts

Frenemies: Samsung to earn more from iPhone X than from Galaxy S8 parts
Samsung may be selling the iPhone X's OLED display to Apple for at least $70 a pop, but it also supplies other components for it, and the Wall Street Journal has ordered a parts analysis that pegs Samsung's overall revenue from each iPhone X sold to be $110. 

Since Counterpoint Technology Market Research, the firm that did the study, expects Apple to sell 130 million iPhone X units until the summer of 2019, this would bring many billions in Samsung's coffers from Apple's finest handset alone. 

For comparison, Samsung is expected to sell 50 million Galaxy S8 phones in that 20-month timeframe since launch, raking in $202 in component revenue for its own subsidiaries on each piece. In total, the S8 sales will bring $4 billion less in parts revenue than what the iPhone X would rake for Samsung, which is not an apples-to-apples comparison, since Samsung owns its subsidiaries, but a curious fact nonetheless. 

Last year, Apple has evidently accounted for the whopping 35% of its frenemy's revenue, making Samsung employees to call it "LO" for "lovely opponent," and invoking comments like “It’s OK. They’re our best client," when they pull out iPhones at meetings, instead of Galaxies, tip insiders. 

These two companies are the most profitable non-financial entities in the world, and are seemingly destined to be joined at the hip, too, at least until Apple finds alternatives to Samsung's displays and chips for its phones, which might not be an easy task to do.

source: WSJ (paywall)

Related phones

iPhone X
  • Display 5.8" 1125 x 2436 pixels
  • Camera 12 MP / 7 MP front
  • Processor Apple A11 Bionic, Hexa-core, 2390 MHz
  • Storage 256 GB
  • Battery 2716 mAh(21h 3G talk time)

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68 Comments

1. Wickedsamaritan

Posts: 83; Member since: Aug 11, 2017

The TITLE would have made sense if it was *80% OF IPHONE X PARTS WILL BE MADE BY SAMSUNG*

7. trojan_horse

Posts: 5868; Member since: May 06, 2016

And it's to be expected, as Apple sells more flagship phones than Samsung, and Samsung charges Apple more than what it costs to implement Galaxy S8 parts. The iPhone is making Samsung rich, duh. It's a matter of time until Apple goes back to Samsung for the manufacturing of it's SoCs.

15. bucky

Posts: 3784; Member since: Sep 30, 2009

As long as apple keeps designing their parts and sending the instructions to Samsung, Apple will keep coming back.

19. trojan_horse

Posts: 5868; Member since: May 06, 2016

And aa long as Samsung keeps being able to meet the quantity demand of components, Apple will keep coming back.

32. shm224

Posts: 288; Member since: Mar 19, 2015

You mean like the notch on their X screen? Apple has pretty much little to display expertise although Apple fanbois are in denial.

35. xfire99

Posts: 1205; Member since: Mar 14, 2012

More like Samsung is making Apple rich. Apple wont even have any iPhone for sale without Samsung to supply all the components part. Same as all others companies who are relying on Samsung Electronics.

38. bucky

Posts: 3784; Member since: Sep 30, 2009

Samsung is a good manufacturer but let’s pretend like somebody wouldn’t step in their shoes real quick. Also, Samsung has the main component given to them in the smartphone. Then you could turn around and say googles android isn’t as strong as it would be without Samsung. See where I’m getting here??

58. DoggyDangerous

Posts: 1028; Member since: Aug 28, 2015

In fact Samsung made Android famous. Now Google don't need Samsung like before it does because Huawei and other Android manufacturers also have grown exponentially.

61. shm224

Posts: 288; Member since: Mar 19, 2015

@bucky: there isn't really anybody else making AMOLED display -- it's been that way for the past 10 years and will remain so for at least some foreseeable time (another 5-10 years?). There simply won't be anybody else out there; it's either that or Apple could use inferior, old tech by Samsung's competitors.

2. Furkan

Posts: 552; Member since: Feb 25, 2017

Help me. Should I wait for S9&G7? Idk should I go with Note8 ? :/

4. abdoualgeria

Posts: 928; Member since: Jul 27, 2015

If you have 2016 flagship , just wait till next year

5. hemedans

Posts: 755; Member since: Jun 01, 2013

wait for s9, you will get new soc.

17. Furkan

Posts: 552; Member since: Feb 25, 2017

Ok. I need S-pen but i decided to wait the S9. New soc with quick charge 4+(hope)

25. MrShazam

Posts: 987; Member since: Jun 22, 2017

You'll be waiting forever if you always want a faster soc. Next year is always bound to be faster...

44. Xilam unregistered

If you want a faster SoC now get an iPhone. It’ll take about at least a year for Samsung to catch-up. (I’m kidding of course, but basically that’s what Apple hater say to a quiry like this).

53. Furkan

Posts: 552; Member since: Feb 25, 2017

I dont care 30.000 antutu score or a bit better geekbench score ,I wont even notice the difference. I asked this question and %90 says wait the S9. Sorry for English.

55. Xilam unregistered

You notice that when your phone is more capable running higher graphics, make 4K movies that allow editing bright on the phone. Process more background actions without taxing fluidity and ram management. And if all that doesn’t matter - consider that many of us can only afford 2 year old or older devices - my 5s was future proof because Apple had an awesome SoC build on a 64bit architecture. I’m still using that device today and it’s fluid even with iOS 11 on board (keep in mind it shipped with iOS 7 originally). Just for thought.

59. Furkan

Posts: 552; Member since: Feb 25, 2017

I'm still using my note 10.1 2012 edition with android 7.1.2 rom. But freeze problems in games...

66. antonmassoud

Posts: 89; Member since: Oct 22, 2016

Wait for the S9, I guess. I got like 180k score in antutu on my S8+. Ignore who tells you to buy an iPhone, it's not worth it, trust me

3. abdoualgeria

Posts: 928; Member since: Jul 27, 2015

The irony here is epic lol Hi Apple fanboys

6. kiko007

Posts: 7493; Member since: Feb 17, 2016

I agree. It's ironic that Samsung can't make money selling their own products, and rely on components sales to a rival in order to stay in the black.

9. abdoualgeria

Posts: 928; Member since: Jul 27, 2015

Samsung q2 2017 revenue : 50 billions Sammy revenue from iPhone X : barely 2 billions What's your point ??

18. kiko007

Posts: 7493; Member since: Feb 17, 2016

Source? I'm pretty sure Samsung's mobile division would report 50 billion in revenue lol.

21. submar

Posts: 713; Member since: Sep 19, 2014

I am curious why you have to make it to mobile division single time. I am pretty sure he is talking about Samsung as a whole.

34. submar

Posts: 713; Member since: Sep 19, 2014

*every single time

45. Xilam unregistered

Because Samsung whole division is bunch of acquired companies under their ambrella.

48. trojan_horse

Posts: 5868; Member since: May 06, 2016

They are subsidiaries, all under a parent company. They're all still Samsung.

54. Xilam unregistered

Would you say that Dodge Ram and Fiat is the same car? They seem to report their revenue separately. But they’re under one parent company. Apple owns plenty of small companies it acquired offer the years - it also finds a lot of companies that they don’t own. Should we consider those as subsidies too? Not contradicting, just want to know where the grey line is most darkest.

24. abdoualgeria

Posts: 928; Member since: Jul 27, 2015

Apple is ( iPads iPhone iPod , Apple music , Macbooks , Macs , app store ) so why pick only Samsung mobile lol

26. MrShazam

Posts: 987; Member since: Jun 22, 2017

Because that's the only way his divine fruit can appear richer...

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