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Even Though They Are Rivals, Samsung Earns Billions By Supplying Key Components For Apple Devices
Samsung Profits (A Lot!) With Each iPhone Sold, thanks to its global leadership in manufacturing OLED screens and other electronic components. The business relationship between the two tech giants is surprising, as they are seen as rivals in the premium smartphone market.
Despite the legal disputes and taunts in advertising campaigns, Apple and Samsung maintain billion-dollar contracts. The South Korean company is responsible for a significant portion of the technology that powers the iPhones, including the advanced screens on the more expensive models.
Rivalry in the Spotlight, Partnership Behind the Scenes
Behind the competition between Galaxy and iPhone, Samsung Profits (A Lot!) With Each iPhone Sold by supplying the OLED screens used in the Pro models. Apple turns to Samsung due to the superior quality and energy efficiency of the screens, which consume up to 75% less energy, according to tests from independent labs.
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According to consulting firm Display Supply Chain Consultants, in 2022, Samsung supplied 82% of the OLED panels used in the iPhone 14. These contracts generate billions of dollars for the company, which reinvests in innovation and maintains its leadership in the display sector.
Samsung Has Earned More From iPhones Than From Its Own Galaxy Line
According to the Wall Street Journal, in 2017, Samsung made more money selling screens for the iPhone X than from the sales of its own Galaxy S8. This pattern has repeated in the following years, making Apple one of the main sources of revenue for the rival.
Samsung Profits (A Lot!) With Each iPhone Sold, and this revenue is expected to grow. The company also supplies components for Apple Watch, iPad Pro, and, in the future, for the new MacBooks with OLED screens, expected in 2026, according to the consulting firm Omdia.
Apple Tries to Reduce Dependence, but Samsung Still Dominates
Even with Apple’s efforts to diversify suppliers, such as LG and BOE, Samsung remains the main partner in displays. Apple is also investing in its own technology with microLED, which is set to debut in the Apple Watch, but the transition will be gradual.
The dependence remains high, ensuring that Samsung Profits (A Lot!) With Each iPhone Sold, even in a changing landscape.
Samsung Supplies Other Brands and Dominates the Components Market
Besides Apple, Samsung supplies screens, sensors, and chips to brands like OPPO, Google, OnePlus, and even Chinese companies like ZTE. Even those who have never bought a Samsung phone have likely used components manufactured by the company.
The South Korean company works with RAM memory, storage, batteries, and cameras. Rumors suggest that even the future iPhone 18 may use image sensors manufactured by Samsung, reinforcing the brand’s silent presence in competitors’ ecosystems.
Did you imagine that Samsung profits so much from the success of the iPhone?
