Samsung’s component manufacturing arm is the biggest manufacturer of OLED panels. It supplies huge quantities of screens to various businesses. So, when Apple decided to build the first OLED iPhone, it didn’t have many options to source the screens. Despite being rivals in the smartphone market, Apple buys Samsung’s OLED screens for the iPhone X. According to a report from The Wall Street Journal, the Korean company could be charging Apple in the tune of $80 a pop.
In addition to screens, Samsung also provides NAND flash, DRAM chips, and other components to the iPhone maker. This possibly takes the billing to approximately $110 per iPhone.
If Apple sells 130 million iPhone X over the next two years, which analyst firm Counterpoint believes it will, Samsung will make around $14 billion from Apple’s phone. On the other hand, Samsung will make $10 billion in profits from its own Galaxy S8 in the same time span. Weird as it may sound, Samsung will make more money from its competitor’s phone.
The report also states that 35 percent of Samsung’s component business revenue comes from Apple. Goes on to show how much these two titans rely on each other. However, given the bitterness between the two brands, Apple is rumored to source OLED panels from Samsung’s compatriot LG in 2019.