Samsung and Apple: Hidden Partners in the Mobile Industry

In the world of technology, Samsung and Apple are often seen as fierce rivals, with a long history of intense competition. But behind the scenes, there’s a surprising truth: Samsung earns a significant amount of money by supplying Apple with key components for the iPhone. This makes the relationship between the two companies not only complex but also highly profitable for Samsung. Curious how that works? Then read this blog!

An Unexpected Business Partnership

While Apple may design the iPhone, it relies on other companies for many of its key components — and Samsung is one of its biggest suppliers. Even though Apple is known for tightly controlling both its hardware and software, many important parts actually come from Samsung, which is, of course, a direct competitor. This includes OLED displays, memory modules, chips, and cameras used in the latest iPhones.

Samsung has been supplying OLED screens for Apple since the iPhone 4, and that partnership is still going strong. On top of that, Samsung also provides the NAND flash memory and DRAM chips that help power the iPhone’s performance. In short, Samsung is an essential player in iPhone production.

Samsung Earned More from the iPhone X Than from the Galaxy S8

A notable fact from 2017 is that Samsung earned more from the iPhone X than from the sales of its own Galaxy S8. They sold between 180 and 200 million OLED panels to Apple for the iPhone X, which brought them a significant profit. This highlights how important the collaboration between Samsung and Apple is, despite their rivalry. For mobile repair shops, this is also relevant as it shows how dependent Apple is on external suppliers, even its biggest competitor.

An End to the Relationship Between Apple and Samsung?

Although Samsung and Apple have been working together for years, that relationship may soon change. There are rumors that Apple plans to switch to MicroLED displays for the iPhone and Apple Watch, which could mean Apple would become less dependent on Samsung for display technology. If this happens, it could be a significant blow to Samsung, as the iPhone is one of their biggest sources of revenue.

Who Else Does Samsung Need?

While Apple is Samsung's biggest customer, the company also plays a crucial role for other smartphone manufacturers. Samsung Display provides screens not only for Samsung phones but also for brands like Xiaomi, OnePlus, OPPO, and ZTE. Samsung's Exynos processors are used in smartphones from Google, Vivo, and Xiaomi. Additionally, Samsung supplies cameras and memory modules to companies like Google, Xiaomi, and TECNO.

Conclusion

The relationship between Samsung and Apple may not be as simple as it seems. Despite being major rivals in the market, Samsung plays a crucial role in the production of iPhone components, which brings them significant profits. For repair shops, it's important to understand how dependent Apple is on Samsung and other suppliers, as this affects the parts they use and what might change in the future. If Apple does switch to MicroLED displays, it could alter the relationship between the two companies. However, even then, Samsung will remain a key player, not only for Apple but also for other smartphone manufacturers. In short, Samsung continues to be an important partner in the tech industry.