The iPhone X release date is today. We all know how successful Apple products are, but it is reported the Samsung is hoping the model’s success will be as big as its predecessors.
Why Is Samsung Hung Up on the iPhone X?
This may sound contradictory. After all, aren’t Apple and Samsung rivals? Well, here is an interesting tidbit: Samsung is making parts of the iPhone X and is earmarked to gain in excess of $4 billion compared to its own Galaxy S8 smartphone. In fact, the Wall Street Journal estimates that Samsung will make as much as $110 on each iPhone X that is sold from when it hits the market up to the end of summer 2019.
What’s more, Counterpoint has reported that it estimates that more than 130 million units of iPhone X will be sold in this period, boosting the Korean electronics giant’s profits even further. Interestingly, Samsung has previously earned a third of its overall revenue by supplying for Apple’s products, and given the boom in sales that the iPhone X is set to see, it looks like it’s about to be a fantastic year for Samsung.
What Does Samsung Bring to the Apple Table?
For the iPhone X, Samsung has supplied the memory chips and display. The phone has a 5.80nch OLED display and there are no bezels on the sides of the phone, as well as no home button on the front that most iPhone users are used to. When it comes to OLED displays, Samsung is by far the world leader, so it truly does stand to gain from the success of the next iPhone and is likely to remain a major supplier for this device, and Apple overall.
On the contrary, it has been reported that Apple will start looking to cut back on its supply-chain reliance of the Korean company. Further, industry analysts have remarked that Apple is already hard at work to expand OLED production by 2019.
In fact, Apple has reportedly motivated others to build out OLED production operations. This is according to Japan Display Inc. and Sharp Corp. What’s more, it is backing Bain Capital’s bid for Toshiba Corp’s manufacturing of memory chips, which would afford Apple an alternative supplier.
For Now, Apple and Samsung Will Work Together
For the time being, Apple and Samsung will remain close. The companies soak up a whopping 95% of profits within the smartphone industry and they can surely sow those earnings back into research and development as well as marketing. This would no doubt give them an edge over the more minor smartphone players on the market.
While smartphones are certainly a personal preference, and there has long been favoritism between iOS and Android products, we have no doubt that the success of Apple’s latest iPhone model will feed Samsung’s profits handsomely.
Let us know what you prefer: iOS or Android?