Apple is responsible for the smartphone that poses the biggest competition to Samsung in the form of the iPhone X but Samsung still stands to benefit from the success of the iPhone.
The iPhone X is super popular, and to meet the demands it only seems Samsung is capable of meeting the supply. While Apple is rumored to be on the lookout for another supplier of its OLED displays for the next generation of iPhone, it is stuck paying Samsung to supply the iPhone X.
According to a new report, Samsung will supply Apple with between 180 million and 200 million displays for the iPhone X and for upcoming models. That’s set to net Samsung in the region of $20billion in revenue around the equivalent of selling 23 million Galaxy Note 8 units. That puts the cost of the displays at around $120 to Apple to cover the glass and the touch sensor to give an idea of the kind of markup that must be applied for that $1000 price tag of the iPhone X.
Samsung has put the ability to meet the demand of the iPhone X thanks to increasing the yield rate of its A3 production plant that went up from 60 percent earlier this year to 80 percent. Samsung ended the year with a 90 percent yield rate what saw 224 million six-inch OLED panels shipped.
Considering all the associated costs of designing, building, and marketing a device like the Note 8, for Samsung to be making those kinds of numbers from the iPhone X is pretty incredible.