iPhone X: Why Samsung will earn from $4 bn more thanks to Apple’s success

Apple iPhone X will go on sale globally from November 3 and it looks like rival Samsung will also be praying for the success of Apple’s upcoming flagship. The reason: Samsung is making parts for Apple’s iPhone X and will stand to gain nearly $4 billion more from this than its own Samsung Galaxy S8 smartphones.
According to Wall Street Journal, Samsung will make most of this $4 billion in the 20 months after the iPhone X goes on sale. WSJ’s report is based off a Counterpoint Technology Market Research, which was done for the publication. The research firm’s report says Samsung will make $110 on each iPhone X sold until the end of summer 2019.
Counterpoint estimates over 130 million iPhone X units will be sold until this period, thus boosting Samsung’s profits as well. Samsung previously earned one third of its revenue by supplying for Apple products, and given the iPhone X (Ten) will see a boom in sales, 2017-2018 could be a great year for Samsung.
With the Apple iPhone X, Samsung is supplying the display and the memory chips. Apple iPhone X has a 5.8-inch OLED display with no bezels on the side and no home button on the front. Samsung is the world leader in OLED displays, so it stands to gain from the success of the iPhone X in a big way and will remain the major supplier for this device.
In fact, before the Apple iPhone X was revealed, well-known Apple analyst Ming Chi-Kuo of KGI Securities had revealed that the company was paying around $120 to $130 for the display parts. Kuo had said Samsung had the upper hand in the OLED display supply and that diversification of supply would take time. He also pointed out Apple was paying double of what it usually pay for LCD displays. Reports have also said Apple is exploring talks with LG for OLED display, but these will take time to actually materialise.
In terms of display specifications, Apple iPhone X has a Super Retina HD resolution and this is an HDR compatible display with 2436 x 1125 pixels resolution, which comes to 458 ppi. Apple iPhone X is also powered by the new A11 Bionic chip, which the company claims is equipped to handled Face ID on the device. It is also designed to handle AR apps better.

Source: http://indianexpress.com/article/technology/mobile-tabs/apple-iphone-x-why-samsung-will-earn-from-4-bn-more-from-apples-success-4872116/