Samsung manufacturing arms poised to make $4 billion more from iPhone X than Galaxy S8
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If estimates and supplier predictions are correct, Samsung is poised to reap $14.3 billion in parts delivery alone from just the iPhone X through 2019, with the Galaxy S8 gathering only $10.1 billion.
According to a report in The Wall Street Journal, citing data by Counterpart Research, Samsung is expected to be the supplier of $110 in parts per iPhone X, including the display, chips, batteries, and capacitors from Samsung itself and an assortment of Samsung affiliates. The Galaxy S8 has $202 in Samsung-supplied parts.
Through the summer of 2019, Counterpoint expects 130 million iPhone X sold, with 50 million Galaxy S8.
The study assumes that the largest share of a flagship's sales comes in the first two years of availability. It also appears that the study manufacturers gave the Galaxy S8 a head start, and longer period of sales — the iPhone X won't ship until November, and the Galaxy S8 has been available since April.
Also not included in the report is income that Samsung or Apple will earn as a result of the sales of the devices — it only encompasses earnings from manufacturing. Also not included are other devices from 2017 like the Galaxy Note 8, or the iPhone 8.
Apple is seeking to cut back on its dependence on any one manufacturer. Apple's partnership with Bain Capital and others to buy Toshiba's memory division appears to be one such move, as is the encouragement of other companies like LG to delve into OLED manufacturing.
The Galaxy S8 retails for $749, but often has a notably lower street price. Apple's iPhone X starts at $979. Not included in the study is the Galaxy Note 8, which retails for $949.