A puzzling new report published Monday by The Wall Street Journal reveals how the various, component-manufacturing sub-divisions of Samsung Electronics — including Samsung Display Co. and Samsung China Semiconductor — actually stand to profit over $4 billion more off of Apple’s iPhone X than they will off of Sammy’s own Galaxy S8.
The report, which is based loosely off of data collected and analyzed by Counterpart Research International, specifically cites analysts who claim that Samsung is supplying Apple with about $110 worth of components for each iPhone X device — including the handset’s massive, 5.8-inch AMOLED ‘Super Retina’ display, as well as a variety of chips, batteries, and other parts from Samsung-owned affiliates.
In comparison, Samsung’s own, 5.8-inch AMOLED-equipped Galaxy S8 is said to contain $202 in Samsung-manufactured parts.
How the Numbers Add up
Based on the most recent supply-chain predictions, analysts suggest that at a rate of $110 worth of components in each iPhone X, Samsung and its subsidiaries are poised to profit $14.3 billion from just the sale of its parts through 2019 — whereas the South Korean-company will comparatively bring in about $10.1 billion from its own components used in the Galaxy S8.
These numbers are based on predictions that “through the summer of 2019” Apple will sell 130 million iPhone X handsets, whereas Samsung is only expected to sell just 50 million Galaxy S8’s during the same timeframe.
Interesting and definitely worth noting, however, is that Samsung was given a clear leg-up in this analysis, seeing as how the analyst’s illusive clock “through Summer 2019” technically began ticking back in April when the S8 launched. And meanwhile, Apple’s iPhone X is still over a month away from gracing doorsteps.
As mentioned, this report doesn’t focus on the overall revenue that Samsung or Apple will generate from the sale of their flagships but only on the cost of iPhone X/Galaxy S8 components manufactured exclusively by the Korean company. Neither does it factor in more recent devices like that iPhone 8 or Galaxy Note 8, for example. However if these predictions turn out to be true even in the slightest, well, that’s great news for both companies, right? — at least until Apple gets the wheels spinning on its own, in-house component production.