Apple and Samsung are two of the best smartphones companies in the world. Over the years, we have seen Samsung and Apple users have a go against each other and prove their loyalty.
Recently, Apple launched the latest version of iPhone, iPhone X. Now, you would think that Samsung would want Apple to seller less number of phones so that they can capture a bigger market share. But, that is not the case.
If there is one company which would want Apple’s latest iPhone to succeed, it’s Samsung. Yes, you read that right.
The Wall Street Journal reported that Samsung will make $110 (₹7,209) on each unit of iPhone X which has been priced at $999 (₹65,471).
In case you did not know
Samsung is the only company that can make the OLED displays, NAND flash, and DRAM chip in the quantities that Apple needs for its iPhones. And, for this reason, Apple’s success would mean more revenue for Samsung.
This proves that no matter how much these companies compete against each other at a global level, they are dependent on each other. And, in this particular case, both are heavily dependent on each other.
iPhones are Apple’s most successful product and a huge percentage of their revenue comes from the sales of iPhone. Because of its large scale production, Apple are left with no other option but to collaborate with the Korean giants.
Samsung, on the other hand, are helping their biggest competitor but earning a lot of money. The Wall Street 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.
“These are two of the largest companies on the planet deeply tied at the hip and directly competitive,” said David Yoffie, a professor at Harvard Business School, who has studied Apple and serves on Intel’s board.
“That makes this stand out compared with almost any relationship you can think of,” Mr. Yoffie added.