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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 amanojaku on 11/12/2012 12:55:13 PM , Rating: 3
quote:
I get that samsung is upset with apple but apple will eventually be able to find another chip maker. Why would you be willing to loose a contract for 200 million chips.
From the article
quote:
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.
Consider that Apple was already dumping Samsung. For example, LG displays that turn out to be inferior to Samsung's. Now it's looking for alternative CPU manufacturers, and can't find any.

Someone on this site once said Apple doesn't need Samsung, but the facts appear to contradict that statement. That's what you get for being just an integrator.


RE: Oh! Irony
By Brandon Hill (blog) on 11/12/2012 1:00:50 PM , Rating: 2
From what I gather, Apple wants to and WILL leave Samsung. But it can't just drop them overnight or it would disrupt their production (obviously).

So Apple will begrudgingly stay with Samsung until it can secure enough manufacturing capacity from other fabs to supply enough chips for the iPhone, iPad, and Apple TV.


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