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: Ouch!!
By Tony Swash on 11/12/2012 6:31:48 PM , Rating: -1
You are living proof that iPhobia rots the brain.
You do not need to sell your products at a profit to secure significant market share.
No but you do need to make a profit to make a successful business. Anybody can sell more stuff if they sell it at or below cost but what's the point if the business dies as a result.
Microsoft and Sony did exactly that with their Xboxes and PS3s, by selling those consoles initially at a hefty loss. In fact MS could throw money at its money-losing Xbox division for years simply because it could.
And where did that leave them? Sony is a very sick company and Microsoft is sitting on top of a big but shrinking legacy business and has utterly failed to do anything at all in the giant new mobile markets. I sure hope Apple don't adopt their business model :)
There is a surefire way to crash the Apple train: kill its supply lines. Stalin did that against Germany's eastern front in WWII and forced Hitler to go defensive. Considering Apple manufactures nothing in-house, there is more than one way to choke its assembly line.

A little snowball rolling down a hill at the top of Mount Everest becomes a landslide several miles below. A 20% cost increase in smartphone/tablet SoCs and severing the display contract are just the beginning.
Leaving aside your dubious grasp of history if you think that somehow Apple will be killed by companies queuing up to not make a lot of money by not doing business with the biggest and most lucrative supply chain on the planet you are living inside some weird kiddie universe. What next the fucking Lone Ranger rides in and shoots Tim Cook. Grow up man.
Here is another aspect that you are not personally aware of: the iPhone 5 and the iPad Mini are the biggest causes of crime in the United States. Their high resale values are tantalizing money spinners for Knockout King participants and amateur scammers.

That's why any disruptions in the supply lines will ultimately hurt Apple.

Of course, silly me. Apple's success at selling vast numbers of products at high rates of profits is exactly what will kill their business in the end. I guess that's why Microsoft took the sensible approach it did with Windows Phone, by only selling in minute quantities they side steeped the danger of disruption to their supply chain. Cunning.
Whose sane company will make chips for Apple, knowing that Cupertino is more delicate and fickle than the Northeastern US weather patterns of late and willing to "cut the hand that feeds them"?
Only the foolish ones building a business strategy based on trying to make a profit. What idiots, don't they know that in the new economy profits are passé and everything is now sold at cost.
Mutually assured destruction. HTC is in a irrecoverable downward spiral, and Apple just kickstarted its own decline. One step forward, 99 steps back, good work mongoloid.
Insults based on the demeaning and insulting term for a congenital childhood disease. You iPhobes are so classy.

Keep 'em comin, anti-heterosexual internet gangster. I'd love to use remote-iPhone-controlled B-stock OCZ power supplies as bomb material against the likes of you zombie hordes.

Jeez - are you actually mental?

If so I apologise for teasing you.

"This is from the It's a science website." -- Rush Limbaugh

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