For every iPhone X sold, Samsung gets richer. Here’s why

fuad lawal

October 4, 2017 8:14 PM

Samsung has Apple on lockdown, and it doesn't look like that is changing any time soon.

A few weeks back, Apple announced the iPhone X, its new, about-400-thousand-naira flagship.

But here’s what you probably didn’t know about this gorgeous looking phone; if there wasn’t Samsung, there probably won’t be the iPhone X as we know it today.

Erm, What The Hell?

For every iPhone X that gets sold, Samsung gets to pocket a sweet $110, according to Verge. That’s because they manufacture the AMOLED screens on the iPhone X. You’re probably thinking, “wait, I thought Samsung and Apple were sworn enemies?”

You’re probably right, but sometimes, you have to bend the knee to get what you need. These screens are currently being manufactured by only Samsung, and they own about 90% of the current market share.

It’s a Samsungopoly.

When you own a share of the market as large as Samsung in the OLED market, you get to dictate the price. When you dictate the price, you create a monopoly. In fact, analysts are saying that Apple might get as much as 40 million pre-orders for the iPhone X alone. Now, multiply that by how much Samsung gets to make per device (20 marks).

And you can be sure Apple is not enjoying this.

That’s why they are investing $2.7 billion in LG’s OLED production line. In fact, they want a special line built just for the iPhone.

Google isn’t getting left out of the race too. So they also invested $880 million to LG display. But LG won’t even be read till 2019.

Moral of the story: People need each other, even enemies sometimes.

fuad lawal