How Samsung is projected to make $4 billion from iPhone X sales

Yes, that’s $4 billion with a “b”

iPhone X is the Samsung killer right? Wrong. A report has just came out from the Wall Street Journal that Samsung will make a lot more money off of iPhone X sales than of its own phone sales. $4 billion more to be exact.

How could this be?

Well, since the first iPhone, Apple has had other companies (mainly Foxconn) gather the components to create its popular smartphone. Apple does the designing, other companies make the components. For an example, this is how I think it works: Apple’s hardware team gets together to brainstorm what they want the next iPhone will be. Of course most of the ideas come from research and development from surveys, customer support, etc.. Once the hardware team has gathered all of their ideas together, they decide on what hardware components are needed to make their idea possible. I’m certain theres a lot more to it, but I’m summarizing.

In this specific case, Apple called good ol’ Sammy (Samsung) to make the big, beautiful 5.8 inch OLED display, NAND flash, and DRAM chips in iPhone X. In non-tech speech, that’s the screen, the part that gives you that 128Gb storage space, and the chip that makes switching between apps elegant. Currently Samsung is the only provider that can provide these parts in a quick and secure fashion that Apple needs.

If the analysts are correct and Apple iPhone X sales are through the roof. Samsung would make more money off of its competition that it has from their own products. So the next time you find yourself in a heated consumeristic battle between iPhones and Samsung phones, remember who the real winner is in the thick of it all.