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Print 70 comment(s) - last by Xplorer4x4.. on Nov 17 at 3:34 PM

Samsung hikes up prices on Apple

The legal battles between Samsung and Apple have reached near legendary proportions. Apple won a major decision against Samsung in U.S. courts where the jury awarded Apple $1 billion in damages. Samsung is appealing that ruling and is even trying to get the case thrown out of court by alleging juror misconduct.

Apple lost a patent infringement suit against Samsung in Europe and was forced to run apology ads in major publications stating that Samsung did not copy the iPad.
 
Reports are now coming in that Samsung Electronics has recently raised the price it charges for mobile processors to Apple. Samsung supplies the processors for the popular Apple iPad and iPhone.

According to a source claiming to be familiar with negotiations between the companies, Samsung increased the price of processors it provides the Apple by 20%.

"Samsung Electronics recently asked Apple for a significant price raise in (the mobile processor known as) application processor," the person was quoted as saying in the report. "Apple first disapproved it, but finding no replacement supplier, it accepted the (increase.)"

Apple was, understandably, was unhappy with the price hike and initially refused to pay it. However, it came back and agreed to pay the additional costs when no alternative provider could be found.
 
The source also says that Apple buys all of its application processors from Samsung and purchased an estimated 130 million units last year. The source also estimates that Apple will purchase over 200 million application processors from Samsung this year.
 
One last tidbit the source noted was that Samsung has a long-term contract to provide the application processors to Apple that runs through 2014. Neither Apple nor Samsung have officially commented.

Source: Market Watch



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RE: Oh! Irony
By BB33 on 11/12/2012 12:49:50 PM , Rating: 2
They may have an actual valid reason for the price hike but then again it could be they just want to screw with apple lol.
I dont know and dont really care if they shoot themselves in the foot... sucks for them.


RE: Oh! Irony
By SublimeSimplicity on 11/12/2012 1:43:29 PM , Rating: 5
They have a valid reason. Some company keeps suing them for patent infringement, someone has to pay for those judgments.


RE: Oh! Irony
By RufusM on 11/12/2012 2:02:49 PM , Rating: 2
Story 1: Apple wins $1B in patent judgement.

Story 2: Samsung charges Apple $1B more for processors.


RE: Oh! Irony
By inighthawki on 11/12/2012 3:31:14 PM , Rating: 2
That's about what I got out of it too :)


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