The components division at Samsung, which can be termed the arch rival for Apple in the smartphone market, is reportedly set to make around $110 (roughly Rs. 7,200) from the sale of each iPhone X unit once it hit the shelves. The most surprising aspect of the new report by WSJ, however, is that the South Korean company has been tipped to earn more in revenue from the components on iPhone X than from the parts made for the Galaxy S8 in the 20 months after the new Apple model goes on sale.
If you are scratching your head to understand how this unique situation has come into place, Apple has used the OLED displays and memory chips manufactured by Samsung in its latest high-end flagship model iPhone X. "The South Korean company's giant components division stands to make $110 from for each top-of-the-line, $1,000 (roughly Rs. 65,500) iPhone X that Apple sells," The Wall Street Journal said in its report.
"While each company vies to get consumers to buy its gadgets, Samsung's parts operation stands to make billions of dollars supplying screens and memory chips for the new iPhone-parts that Apple relies on for its most important product," it added.
Citing the analysis conducted by Counterpoint Technology Market Research, the report says that "Samsung is likely to earn roughly $4 billion more in revenue from iPhone X parts than from components made for the Galaxy S8 in the 20 months after the new iPhones go on sale Nov. 3."
Considering that the majority of sales for any new smartphone happen within 20 months of its launch, it can be said that this statement holds true for the lifetime for the aforementioned handsets. It seems like a win-win situation for Samsung, a company that was facing major wrath from consumers around the world same time last year. Fortunes have clearly turned for the South Korean company and after the successful launch of its Galaxy S8, Galaxy S8+, and Galaxy Note 8 smartphones, it looks set to reap benefits from the sales of Apple iPhones now as well.
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