Apple has ventured into the foldable smartphone market with its new iPhone Duo, and it seems that Samsung is reaping significant rewards from this collaboration. The displays for the iPhone Duo are supplied by Samsung Display, leading to substantial financial gains for the South Korean tech giant.
Samsung's Financial Gain from iPhone Duo
Reports indicate that for every unit of the iPhone Duo sold, Samsung earns approximately USD 250, which roughly translates to around Rp 4.4 million. This information was disclosed by a Chinese leaker on Weibo, highlighting the strong financial ties between the two tech giants.
Apple's Contractual Obligations
Apple has entered into a contract with Samsung to utilize their display technology in the iPhone Duo. While Apple typically seeks multiple suppliers for components to negotiate better prices, this time they faced a challenging situation. LG Display, which is usually a competitor in this space, has not yet developed foldable display technology. Although BOE has produced foldable screens for Huawei, Apple deemed their quality insufficient for their standards.
The Impact of Display Costs
As a result, Apple found itself relying solely on Samsung for its foldable displays, securing a contract that spans three years. The cost of the foldable screens is notably higher than standard iPhone displays, which typically cost Apple around USD 70. In contrast, the foldable displays are priced at three times that amount, accounting for more than 10% of the phone's retail price.
Projected Sales and Revenue
Citi analysts predict that Apple will sell approximately 7.3 million units of the iPhone Duo in its first year. With Samsung earning USD 250 per display, this could result in nearly USD 1.8 billion flowing into Samsung Display's coffers. The competitive landscape between Samsung and Apple remains fierce, as both companies vie for dominance in the smartphone market.
While they are competitors, their business relationship continues to thrive, as evidenced by the Galaxy Fold competing directly with the iPhone Duo. Apple’s recent launch of the iPhone Duo under CEO John Ternus marks a significant moment for the company, which has historically maintained strict control over its suppliers. However, for the next three years, Apple’s reliance on Samsung for this critical component will be a defining aspect of their foldable smartphone strategy.
Source: https://inet.detik.com/consumer/d-8663183/cuan-raksasa-samsung-di-balik-layar-iphone-duo
