Tech companies hate each other, right? Reading the popular tech press certainly makes you think so, but don’t buy into it.
As much as Samsung would like to sell more phones, they also make money when Apple sells more iPhones. Google gets paid when Apple sells more iCloud subscriptions, and even Amazon stands to gain financially if Netflix keeps growing.
Sound strange? Of course it does. But these companies aren’t just rivals: they’re also each other’s customers.
iPhone X: By Samsung, Toshiba, Intel, and Texas Instruments
The iPhone X just might be Samsung’s most profitable phone.
Apple makes the iPhone X, of course, but Samsung manufactures the OLED display that makes it stand out so much. That display amounts to $130 of the phone’s $1000 price tag. Combine that with a few other high-margin Samsung parts, and some analysts think Samsung made more from each iPhone X sale than each Galaxy S8 sale—about $130 per unit.
Regardless of whether that’s true, every iPhone X sold is profitable for Samsung, as this video by The Nerdwriter outlines quite nicely.
And Samsung isn’t the only tech company with parts in the iPhone X. Bloomberg’s Mark Gurman reports that Intel and Quallcomm both provide modems, Toshiba provides flash storage, and even Texas Instruments provides a part or two. That’s right: the iPhone X is built, in part, by the company behind that graphing calculator we all had to buy in high school.
Apple, of course, competes with these companies on some level. But that doesn’t stop Apple from purchasing their parts. It can’t. The iPhone is the best selling phone year after year, and making millions of phones means working with whoever can offer the best price—even your rivals.
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