Samsung Will Earn More On The Iphone X Than On The Galaxy S8

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Analyzing the cost of Samsung components, which are supposed to be used by Apple in the new iPhone X, the experts found out that the Korean company will earn about $110 on each device sold. This is more than the companies bring the details of every sold Galaxy S8.

WHAT DOES SAMSUNG DO FOR THE IPHONE X?

The most complex component of Samsung in the iPhone X (and also the most expensive) is the new OLED screen. This is an “exclusive” display, developed by Samsung specifically for Apple. However, the company also manufactured a number of other components for the iPhone X, experts say. A study by Counterpoint, conducted for The Wall Street Journal, shows that Samsung also produces batteries and capacitors for the new flagship iPhone. We can not fail to note a certain irony, which the study revealed.

 

HOW MUCH SAMSUNG WILL EARN ON THE IPHONE X?

“Samsung is likely to earn $ 4 billion more on various components of the iPhone X than on the production of parts of its own flagship smartphone, the Galaxy S8,” the experts write. However, this is not a fair comparison for several reasons. First, they took into account only the profits of the Samsung division, which produces the details, and not the total profit of Samsung Mobile from sales of the Galaxy S8. Secondly, as noted in the study, it reflects the projected sales for the two devices.

Experts expect that Apple until the summer of 2019 will sell 130 million units of the iPhone X and earn $ 110 for Samsung on each of them. At the same time, global sales of the Galaxy S8 are expected to amount to $ 50 million and will bring Samsung 202 dollars from each “tube” due to components such as displays and chips for the first 20 months of sales.

In other words, since Samsung produces more components for its smartphone than for the iPhone, it earns more money from each sale, but since it is expected that the iPhone X will be sold better, the total cost of selling its components will be higher.