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 zero2dash on 11/12/2012 12:50:30 PM , Rating: 0
apple will eventually be able to find another chip maker

Will they find one with Samsung's resources? Maybe so, maybe not.

Who else is going to mass produce chips at a level Apple is happy with?
-They're apparently trying to eliminate Intel.
-I see no reason why they'd partner up with AMD.
-They could go with nVidia, but they'd probably charge more than Samsung.

RE: Oh! Irony
By HoosierEngineer5 on 11/12/2012 1:54:52 PM , Rating: 2
I don't think nVidia has a fab. Apple needs a state-of-the-art company to work with. Right now, AMD could use a partner - they probably have good relations with Global.

RE: Oh! Irony
By Solandri on 11/12/2012 2:48:02 PM , Rating: 2
That was my thinking too. Apple could buy up AMD without even blinking. AMD's market cap is only 1.4b. Their annual revenue last year was less than Apple's profit last quarter.

RE: Oh! Irony
By Mitch101 on 11/12/2012 6:26:28 PM , Rating: 2
Unfortunately AMD would lose their x86 license if that happened. AMD no longer has FABS. But on the flip side AMD seems to lose money in the X86 war with Intel so maybe cutting off AMD x86 chip war and AMD focusing on Graphics and ARM cpu's they might become a profitable company.

Nah I like AMD chips they keep PC's low priced.

RE: Oh! Irony
By ritualm on 11/12/2012 3:24:58 PM , Rating: 2
Intel is one of the very few chip companies that also runs its own chip foundries. AMD stopped that back in 2009 when it exited the foundry business as part of the new x86 settlement between Sunnyvale and Santa Clara.

Neither AMD nor nVidia has chip foundries for GPUs, that stuff is fabbed by TSMC. Ever heard of the Radeon 5000-series shortages and Fermi problems?

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