Although devices like the Galaxy S8 and Note 8 are officially Samsung’s response to the Apple’s next-gen phone, the South Korean tech giant will nonetheless do quite well from the success of the iPhone X.
How well? According to a new report, Samsung will earn roughly $110 for every iPhone X that Apple manages to sell.
The reason? The Super Retina OLED display in Apple’s upcoming high-end iPhone. Samsung is currently the only OLED manufacturer for Apple, although it is likely that Cupertino will expand its list of OLED suppliers for future iPhones. In addition, Samsung also builds the capacitors and battery for the new device.
Research carried out by Counterpoint Technology Market Research suggests Samsung is likely to make around $4 billion more in revenue making parts for the iPhone X than it does from the parts it manufactures for the Galaxy S8 handset.
Counterpoint claims Apple will sell around 130 million iPhone X handset in total. A previous report claimed that, despite being Apple’s most expensive iPhone in history, the high-end components Apple is using for the new handsets means that the company will make less money than on previous devices.
In Samsung’s most recent quarter, profits rose 72 percent — in large part due to Apple’s orders for components for the next-gen iPhone models. With Apple looking to roll out new OLED handsets for next year’s refresh, Samsung is also increasing its investment in OLED manufacturing.