This Monday, research revealed that Samsung will earn $4 billion ($4.2 billion to be exact) as revenue from their sales to Apple for the production of iPhone X. This is considerably more than the revenue generated from their main flagship, the Samsung Galaxy S8.
The analysis was conducted by Counterpoint Technology and it predicted the sales proceedings for 20 months after the new iPhones are put on sales this November.
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, according to estimates based on a projected bill of materials. The Counterpoint analysis includes parts sales from Samsung Electronics plus two Samsung affiliates that make batteries and capacitors.
They selected a 20-month long time period because a smartphone is expected to make the most sales in the first 20 months of its release.
The Most Profitable Companies Of 2017
S&P Global Marketing Intelligence’s research reveals that Apple and Samsung are expected to sit atop the world’s businesses as the most profitable companies in 2017 (excluding Chinese banks).
Samsung makes billions from their operations, as well as billions of dollars from their unique OLED screen and NAND flash memory chips which are sold to Apple. If Apple achieves a high number of sales, Samsung profits as well.
Apple and Samsung: “Lovely Opponents”
Apple and Samsung have been working in close association for a long time.
Lee Jae-Yong – Samsung’s founder (Lee Byung-Chul’s great-grandson) personally negotiated with Steve Jobs to work together and provide flash memory chips for the iPod.
Their relationship has been seen more as an association than a rivalry – and this is out of pure necessity. There aren’t many semiconductor manufacturers who can work at a huge scale and produce great numbers of NAND flash memory – as many as Samsung can make. The OLED display used in the iPhone X is only made by Samsung, which is why the companies need to stick together.
At meetings, Samsung executives are known to tell attendees who pull out iPhones: “It’s OK. They’re our best client,” according to people familiar with the matter.
Samsung employees often refer to Apple with code names. One of the most popular is “LO,” short for “Lovely Opponent,” people familiar with the matter said.