comscore Here's why Apple and Samsung wish for a successful iPhone X
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Here's why Apple and Samsung wish for a successful iPhone X

Apple iPhone X uses OLED panel and memory chips made by Samsung.

  • Published: October 4, 2017 10:11 AM IST
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The Apple iPhone X would be available starting November 3, which is a little under a month away. Apple seems to have placed all its bets on the success of the new flagship smartphone. And interestingly, Apple’s biggest competitor Samsung too is hoping for the iPhone X to be a hit. While the two companies are believed to be arch-rivals, the two are also connected ‘deeply from the hip’, says David Yoffie, a professor at Harvard Business School. Also Read - Apple Arcade brings MasterChef: Let’s Cook, “Ad-free” Super Stickman Golf 3 and more

Also Read - Samsung Galaxy F62 gets cheaper by Rs 6,000 in India: Check new price

While iPhone X boasts of the ‘powerful’ A11 Bionic Chip, Face ID, TruDepth Camera and Augmented Reality tailormade by Apple itself, the $999 smartphone uses the OLED panel imported from Samsung Display, the South-Korean firm’s display manufacturing arm. Thus, the success of Apple iPhone X is directly proportional to profit revenue of Samsung OLED display operations. Also Read - These four popular Samsung phones get cheaper in India but for limited period

Moreover, the new iPhone also uses memory chips imported from Samsung and that is why it becomes clear why Apple’s archenemy would want iPhone X to flourish in the market. Apple is already expecting iPhone X to be a roaring success and according to a recent report, consumers are also rooting for the OLED iPhone over the incremental upgrades iPhone 8 and iPhone 8 Plus.

According to an analysis published in The Wall Street Journal, Samsung is likely to earn about $4 billion more in revenue by making parts for the iPhone X than the parts it makes for its own flagship Galaxy S8 smartphone in 20 months from November 3 release of iPhone X. To put this in perspective, where the base variant of the iPhone X starts from Rs 89,990 in India, the price for the Galaxy S8 base variant starts from Rs 57,990. ALSO READ: Samsung Galaxy Note 8 vs Apple iPhone 8 Plus drop test reveals which is stronger among the both

According to the report, if Apple sells around 130 million units of the iPhone X, Samsung earns a revenue of around $110 (approximately Rs 7,200) on each unit, combining the profit for display and memory chips used. While Counterpoint notes Samsung to sell only around 50 million units of the Galaxy S8 earning a profit revenue of $202 (approximately Rs 13,500) from each unit.

Ahead of iPhone X launch, reports suggested that Apple is looking for secondary OLED supplier and following that the company has reportedly been in discussion with firms like Sharp and Toshiba to develop their OLED manufacturing units. Basically, Apple wants to reduce its reliance on Samsung for the display panel, which allegedly has been causing iPhone X manufacturing delays. ALSO READ: Apple iPhone 8 and iPhone 8 Plus repair can set you back for around Rs 19,000: Report

Till the time Apple gets another supply chain up and running, it will have to stick with Samsung which dominates the OLED display market alone. Samsung is said to have earned $195 billion simply by fulfilling Apple imports, that accounts for around 35 percent of the company’s total revenue generated last year following Galaxy Note 7 fiasco. The 2017 flagship caused a great loss to the company’s smartphone market and seems like it saved itself from losing business because of orders from Apple.

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  • Published Date: October 4, 2017 10:11 AM IST


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