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 Shadowself on 11/12/2012 2:07:54 PM , Rating: 4
Please read the DT article and the source material.

These are about negotiations on the next contract. The current contract runs into 2014.

There is no "fleece 'm while you can".

Apple is already planning on moving the vast majority of their chip production to other companies. Samsung has already stated that it will radically decrease the number of chips sold to Apple starting in the first half of 2013.

Also these are leaks about ongoing negotiations on a contract that won't take effect for well over a year from now. The final contract could be any increase at all (0% to 100% or more). The leak is that one of the parties (likely Samsung) is saying 20%.

Starting in 2014 Apple may pay 20% more for the few chips it does get from Samsung. There's nothing more too it than that.

RE: Oh! Irony
By ClownPuncher on 11/12/2012 2:18:37 PM , Rating: 2
Volume pricing.

RE: Oh! Irony
By TheJian on 11/13/2012 7:46:05 AM , Rating: 2
"The two firms have started to reflect the new supply price recently, the report added, citing the same person."

Kind of sounds like it's happening NOW not some imaginary new contract in 2014.

Got any proof. I read the article before it was even posted here and just read it again. I still don't see anything saying new contract AFTER 2014. It's affecting pricing NOW. They are only obliged to make chips to 2014, but it seems there's no defined price THROUGH 2014. Which clearly is changing TODAY with the (yesterday now...LOL) announcement of Googles Nexus 10.

Hmmm...Coincidence? Chips shift to google's device and take away from Apples. Hmmm, odd they ran out in an hour? I'm thinking the shorting on apple chips happened a few weeks or months back, which is why Apple didn't have enough to last more than an hour. They are NOT that bad at estimating sales. They just had no way to force sammy to give them more when Google probably bought quite a few of exynos5.

Fleece while you can. Until you prove it wrong :) Might want to re-read the "source material" yourself.

This is like the president saying "I said it was a terrorist act in the garden", when he really said "America won't stand for terrorist ACTS", but didn't call the one that just happened a "TERRORIST ACT" as the lame a$$ candy crowley said he did. She of course backtracked less than an hour later, but 60million people saw her tell mitt romney he was wrong and the obama was right. NOPE. Romney was right, president didn't say it. Romney should have corrected that in the first 2 minutes of the 3rd debate to let america know he lied and so did crowley. A few minutes later in that "garden" speech he again blamed the video...LOL. In his UN speech he blamed the video 6 TIMES! LOL. Sorry, you're creating meaning that isn't there, just like the prick in the white house and his little helpers the liberal media :)

Unless you can show some link that DIRECTLY says Apple isn't going to be charged this 20% extra until 2014, you're wrong. This is directly related to a better price no doubt from google to woo production from apple. Sammy has less need for apple's chips now. Google will sell this out in a week and want more. Then again, maybe they shorted apple a ton, so google will have plenty. I've been up all night waiting for it to go on sale at googleplay...ROFL. Dad wants one for xmas, but we'll settle for the u30gt w/32GB/Jellybean if forced as I don't think google will have enough of these. U30GT really does all he needs I just wanted him to get the better one. I can wait out tegra4 10inchers. Hurry the hell up google! I expected to be putting in my credit card# at 12:01 PST...ROFL.

RE: Oh! Irony
By testerguy on 11/14/2012 11:04:59 AM , Rating: 2
You shouldn't be so influenced by what you want to believe.

He was actually bang on. There has been no price hike, according to Samsung.

A Samsung official has reportedly denied claims that the company has raised the price it charges Apple for its iPhone and iPad processors by almost 20 percent. Speaking with Korean newspaper The Hankyoreh, the unnamed official added that prices were agreed upon at the beginning of each year and "aren't changed easily." Monday's report in rival paper Chosun claimed Apple and Samsung have a supply agreement that runs through to 2014, and unless "special cost factors" were involved, unit prices have traditionally stayed level.

"We can't expect users to use common sense. That would eliminate the need for all sorts of legislation, committees, oversight and lawyers." -- Christopher Jennings

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