Samsung to make $4 billion more from iPhone X parts than Galaxy S8 parts: report

Apple and Samsung are supposed to be the biggest rivals in the tech world, bound to one another by one of the longest-running and most acrimonious lawsuits in Silicon Valley history.

But behind the scenes, Samsung and Apple appear to co-exist just fine, and their bond may get stronger after the iPhone X is released in November.

As both iPhone competitor and iPhone parts-maker, Samsung is expected to have a windfall worth billions of dollars from iPhone X, according to the Wall Street Journal.

Samsung is likely to earn about $4 billion more making parts for the iPhone X than from parts it makes for Galaxy S8 in the 20 months after iPhone X’s release on November 3, according to an analysis conducted by Counterpoint Technology Market Research conducted for The Journal.

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The difference in revenue is thanks to the massive gulf of demand between a new iPhone and a new Galaxy. The iPhone X is expected to sell 130 million units in the first 20 months, 80 million more than the Galaxy S8.

Despite being entangled in a six-year lawsuit over patent infringement damages, Samsung remains one of Apple’s suppliers for iPhone parts. Samsung is one of the few suppliers in the world that can manufacture small chips with extra memory capacity and OLED displays — an ultra-sharp, energy-efficient screen which Apple introduced for iPhone X — that can keep up with Apple’s massive demands.

The love-hate relationship is evident inside the South Korean tech giant, according to the Journal.

Samsung executives reportedly tell clients with iPhones that it’s OK to use the devices in front of them as Apple is “our best client.” Employees gave Apple the codename “LO,” short for “Lovely Opponent.”

Apple employees in Cupertino, however, do not share the same sentiment, reportedly critiquing Galaxy phones behind closed doors.

In the courtroom, there will be more bad blood. A federal appeals court is set to determine this month whether a new jury trial is necessary to resolve a case in which Samsung was set to give Apple $400 million for patent infringement damages.

Last December, the Supreme Court unanimously voted that Samsung may not have to pay the $400 million to Apple and punted the lawsuit back down to the federal appeals court.

Photo: A Samsung Electronics logo is displayed on the glass door of a company showroom in Seoul in 2012. (JUNG YEON-JE/AFP/Getty Images)

 

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