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“Lovely Opponents“: Samsung to earn $4 billion more from iPhone X parts than from Galaxy S8 parts.

(FinancialPress) — A new chapter in Samsung‘s (SSNLF) lucrative partnership with Apple (AAPL) sees the Korean tech giant slated to earn more from manufacturing parts for their competitor than they will for the parts they make for their own flagship.

Samsung is forecasted to bill $4 billion more to Apple for iPhone X parts than it will bill its own handset manufacturing division for Galaxy S8 parts, according to research data released on Monday by Counterpoint Technology for The Wall Street Journal.

The prediction is based on projected sales in a 20-month period, which is the timespan that analysts have identified as within the one that the majority of sales of new smartphones occur after a new model is released.

Counterpoint expects Apple will sell 130 million iPhone X units, earning Samsung $110 on each through the summer of 2019, while Galaxy S8’s global sales are expected to be 50 million, earning Samsung $202 each from components such as displays and chips in its first 20 months of sales, according to estimates based on a projected bill of materials. The Counterpoint analysis includes parts sales from Samsung Electronics plus two Samsung affiliates that make batteries and capacitors.

 Forecasted by the S&P Global Market Intelligence to be the two most profitable companies in the world in 2017, barring Chinese banks, the relationship between both companies goes a long way even though they‘re fierce competitors in the retail market.

It goes back more than a decade, when Lee Jae-yong, grandson to Samsung‘s founder Lee Byung-chul, personally brokered with Steve Jobs himself, which set Samsung as provider of flash memory for iPods.

The relationship has become stronger recently, mostly out of necessity. Samsung is one of the only semiconductor providers that can make large amounts of NAND flash memory, and is to-date one of the only significant manufacturers of the OLED display that Apple made a staple of the iPhone X.

Samsung is reported to refer to Apple with code names, “LO“ being one of the most popular ones. ”LO” stands for “Lovely Opponent“. Meanwhile, Apple employees refer to Samsung as… Samsung.

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