Samsung's component division will make more money off the iPhone X than the Galaxy S8

[razaldo]

According to this article in The Verge (originally from The Wall Street Journal), Samsung will make around $110 for each iPhone X sold by Apple! The total money they are expected to make is pretty huge:

Quote

The Journal estimates that Samsung’s profits from the iPhone X are expected to be so large that the company’s revenues could earn up to $4 billion more than producing parts for the Galaxy S8.

This actually puts Samsung in a position where they can not only make money from Apple (since Samsung is the only OLED displays and other hardware in large quantity, but they can also hamper / delay manufacturing plans. Does anyone know how they manage this business dilemma (I meant to say ethical, but that really does not apply in the corporate environments today).

 

[ItsTheDuckAgain]

1 minute ago, razaldo said:

Does anyone know how they manage this business dilemma

....in a way they make the most money out of it. the end.

[TrigrH]

3 minutes ago, razaldo said:

Samsung will make around $110 for each iPhone X sold by Apple!

I call BS, apple is too stingy to pay that much for a display.

[razaldo]

1 minute ago, ItsTheDuckAgain said:

....in a way they make the most money out of it. the end.

True. But they also have this golden opportunity to seriously damage one of their biggest competition.

[3rrant]

Just now, razaldo said:

True. But they also have this golden opportunity to seriously damage one of their biggest competition.

A get bashed by their legal department?

 

Samsung is a huge corporation made by hundred of different "companies" all under the same banner, to protect their own interests they must not prevent any of it's core-companies to lose sales to (unpredictably) improve another's.

[razaldo]

2 minutes ago, TrigrH said:

I call BS, apple is too stingy to pay that much for a display.

Didn't think about that. Looking at the mark ups Apple has had on the previous iPhones, the price does seem high.

 

Will look up some more into this now.

[Brooksie359]

2 minutes ago, TrigrH said:

I call BS, apple is too stingy to pay that much for a display.

If you have something they want you can get a deal like that. 

[captain_to_fire]

This doesn’t surprise me since Apple has been Samsung’s biggest customer even after the patent infringement litigations in 2012. That’s why Samsung needs Apple. 

[razaldo]

1 minute ago, hey_yo_ said:

This doesn’t surprise me since Apple has been Samsung’s biggest customer. 

True. They have been buying storage, RAM and display screens from Samsung.

[captain_to_fire]

Just now, razaldo said:

True. They have been buying storage, RAM and display screens from Samsung.

I think Apple is paying higher than other OEMs for the OLED display for the iPhone X. 

[TrigrH]

Just now, Brooksie359 said:

If you have something they want you can get a deal like that. 

It just doesn't add up if a phone is 999USD at retail, mind you apple doesn't get all that money, for 11% of the selling price to just be in buying the display from another company is insane.

 

They still have to get everything else, build and ship the phones and turn a profit? unless samsung is making other parts of the phone?

[Brooksie359]

3 minutes ago, TrigrH said:

It just doesn't add up if a phone is 999USD at retail, mind you apple doesn't get all that money, for 11% of the selling price to just be in buying the display from another company is insane.

 

They still have to get everything else, build and ship the phones and turn a profit? unless samsung is making other parts of the phone?

Well how much do you think the profit margin is? You also have to realize that Samsung has cost involved with their oled displays so it might just have to cost 110 for it to make sense for Samsung. 

[AlTech]

6 minutes ago, TrigrH said:

It just doesn't add up if a phone is 999USD at retail, mind you apple doesn't get all that money, for 11% of the selling price to just be in buying the display from another company is insane.

 

They still have to get everything else, build and ship the phones and turn a profit? unless samsung is making other parts of the phone?

Samsung is also a supplier of Nand Flash, RAM and other components.

[TrigrH]

Just now, AluminiumTech said:

Samsung is also a supplier of Nand Flash, RAM and other components.

for the iphone ?

[ItsTheDuckAgain]

most likely apple gives a shit about how much money they make with the device itself. I guess that most of the money comes from services / apps running on them and generate some sort of revenue, either "direct" via the store or "indirect" via cooperations with various other vendors.

 

i will not be suprised if the iphone XII can insta teleport you to another galaxy and only costs 1$ (while every teleport costs 1.99$ of course...) you get the idea...

[AlTech]

3 minutes ago, TrigrH said:

for the iphone ?

Yes and sometimes also for Macs.

[razaldo]

7 minutes ago, Brooksie359 said:

Well how much do you think the profit margin is? You also have to realize that Samsung has cost involved with their oled displays so it might just have to cost 110 for it to make sense for Samsung. 

Or - the $110 quoted in the article is inclusive of the NAND flash, RAM and other parts

[laminutederire]

37 minutes ago, TrigrH said:

It just doesn't add up if a phone is 999USD at retail, mind you apple doesn't get all that money, for 11% of the selling price to just be in buying the display from another company is insane.

 

They still have to get everything else, build and ship the phones and turn a profit? unless samsung is making other parts of the phone?

Buy a high end gsync monitor and it could easily add up to more than 11% of your whole computer setup price. Displays can be pricey, especially when tech constraints are added

[Bouzoo]

Let's not forget that Apple will sell few times more iPhone X than Samsung will sell S8 and S8+. 

[System Error Message]

this isnt samsung bashing apple. Apple customers will pay the outrages prices that apple charges for crappy hardware and samsung wants a big amount of money to handle the usual lawsuits between them that happens all around while being able to offer their own product for less.

 

also note the headline, component division, not the entire samsung. Samsung will still earn more than the profit they get from screens to apple because they still charge outrages prices for their own android phones. I wouldnt be surprised if the next samsung phone costs the same as an iphone X. Apple is popular in the US and their fans, more people around the world buy samsung because apple just costs a lot more outside the US and everyone in the non 1st world uses android due to availability of low cost android phones.

 

So regardless of this, i dont plan on buying samsung phones. Its not that they explode either but price wise its just a bad call when other phones provide the same quality, performance, sensors without exploding and costing less. Like apple, samsung is overpriced too.

 

Its just 2 greedy companies trying to rip the other off, nothing new here. If you want things to change simply boycott them as if people buy from better companies instead they'll get the message.

[DocSwag]

5 hours ago, TrigrH said:

I call BS, apple is too stingy to pay that much for a display.

I disagree, they really don't have another option.

[PlayStation 2]

2 minutes ago, DocSwag said:

I disagree, they really don't have another option.

If they did go for another option, people would bitch at Apple.

Oh wait, that's already happening. Really can't please everyone at once.

[DocSwag]

1 minute ago, Dan Castellaneta said:

If they did go for another option, people would bitch at Apple.

Oh wait, that's already happening. Really can't please everyone at once.

Yeah, their only other option would be an IPS display (and considering the quality of the displays Apple uses I honestly wouldn't be that disappointed with one) and just imagine all the android fanboys yelling things like, "Apple's $1000 phone has a worse display than a $500 android."

[PlayStation 2]

Just now, DocSwag said:

Yeah, they're only other option would be an IPS display (and considering the quality of the displays Apple uses I honestly wouldn't be that disappointed with one) and just imagine all the android fanboys yelling things like, "Apple's $1000 phone has a worse display than a $500 android."

Yeah, even their LCDs are good all things considered.

Credit where credit's due: Apple does seem to know how to push the best out of something, at least some of the time.

[BuckGup]

Funny that a company makes more money on how many of the competitors item was sold. Samsung should just be in the parts business