Samsung could earn over $14 billion through 2019 making iPhone X components

The incredibly competitive smartphone industry can often feel both weird and ironic to the everyday consumer attempting to catch a glimpse of what happens behind the scenes. For instance, everyone knows Samsung and Apple are still at war when it comes to various patents and intellectual property.

The two mobile tech giants have also been the world’s largest handset vendors for quite some time now, engaging in another bitter war across key markets like the US, despite there being a clear leader in global profits.

Even the advertising duel between these always creative companies can occasionally get pretty ugly, but at the end of the day, Apple and Samsung regularly find ways to bury their animosity and collaborate for mutually beneficial purposes.

Case in point, the as-yet unreleased iPhone X, which costs Apple an estimated $412.75 to make in its top-of-the-line configuration, selling for a whopping $1,149. But a decent chunk of that dough actually goes to Cupertino’s Korea-based arch-rival, which just so happens to be the exclusive supplier of that eye-catching OLED screen and a few other components too.

Namely, a fresh Counterpoint Research report has the total price of Samsung-made iPhone X parts approximated at $110. That doesn’t exactly sound like a fortune, but if you multiply the number by 130 million, you get a whopping $14.3 billion.

As you might have already guessed, 130 mil is how many iPhone X units Apple could sell between early next month and the summer of 2019, compared to “just” 50 million Galaxy S8s in the Android duo’s first 20 months on store shelves.

Ironically, Samsung’s own components inside the GS8 are only expected to yield a total of $10 billion or so at a per-unit cost of $202. That’s more than $4 billion less than the chaebol’s iPhone X-generated revenue, but of course, Samsung earns way more than 200 bucks from every Galaxy S8 sold when taking other stuff into consideration than just components.

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About The Author
Adrian Diaconescu
Adrian has had an insatiable passion for writing since he was in school and found himself writing philosophical essays about the meaning of life and the differences between light and dark beer. Later, he realized this was pretty much his only marketable skill, so he first created a personal blog (in Romanian) and then discovered his true calling, which is writing about all things tech (in English).