Frenemies: Samsung to earn more from iPhone X than from Galaxy S8 parts
by Daniel Petrov / Oct 02, 2017, 9:25 AM
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.
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)
Posts: 73; Member since: Aug 11, 2017
The TITLE would have made sense if it was *80% OF IPHONE X PARTS WILL BE MADE BY SAMSUNG*
posted on Oct 02, 2017, 9:29 AM 25
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.
posted on Oct 02, 2017, 9:41 AM 18
Posts: 1204; 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.
posted on Oct 02, 2017, 11:05 AM 0
Posts: 3771; 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??
posted on Oct 02, 2017, 11:13 AM 3
Posts: 232; 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.
posted on Oct 02, 2017, 1:34 PM 0
Posts: 552; Member since: Feb 25, 2017
Help me. Should I wait for S9&G7? Idk should I go with Note8 ? :/
posted on Oct 02, 2017, 9:30 AM 0
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)
posted on Oct 02, 2017, 9:49 AM 0
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.
posted on Oct 02, 2017, 12:42 PM 0
Posts: 928; Member since: Jul 27, 2015
The irony here is epic lol Hi Apple fanboys
posted on Oct 02, 2017, 9:30 AM 11
Posts: 7457; 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.
posted on Oct 02, 2017, 9:36 AM 10
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.
posted on Oct 02, 2017, 12:34 PM 1
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