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Samsung’s bottom line gets big help from the iPhone X

by Justin Herrick | October 2, 2017October 2, 2017 10:00 am EST

The iPhone X won’t just benefit Apple. One of the company’s biggest rivals in the mobile industry will also gain additional revenue from the expensive device that’s slated for a release later this year. It turns out Samsung, who’s been battling with Apple for years, will get a significant amount of money from Apple as it supplies the display, battery, and capacitors used for the iPhone X.

About $110 for each unit sold will go to Samsung, according to the Wall Street Journal.

Every time an iPhone X is purchased, Samsung will get $110. Those payments will greatly increase Samsung’s bottom line as Apple is expected to sell 130 million units through summer 2019.

It’s estimated that Samsung will gain $4 billion more in revenue from its participation in the iPhone X than it does from creating the Galaxy S8. But, to be fair, the comparison only accounts for Samsung’s component-making division. The actual revenue generated by every unit sold isn’t included.

Apple needed a supplier of high-end displays for its latest creation, and the South Korean company is one of the few who could make the unique OLED panel on a large scale. The OLED panel for the iPhone X is custom. Samsung didn’t provide just any display. There was a list of specifications laid out by Apple that Samsung had to follow. And it succeeded while providing other components. The battery and the capacitors are also coming from Samsung.

Samsung has provided plenty of components to Apple in the past, so this should hardly surprise anyone. The amount of money being paid to Samsung, however, is new. Being that the iPhone X is $999, it’s understandable why the payments will be higher than usual. Apple is packing a ton of new technology into what it believes is the phone of the future.

Justin Herrick

Justin is easily attracted to power buttons. His interest in technology started as a child in the 1990s with the original PlayStation, and two...