Nov 13, 2012


As many of you know, Samsung supplies several important pieces to some of Apple’s devices, including the processors. Recently, Samsung decided to ask 20% more for the cost of those processors. According to sources, Apple disapproved at first, but they could not find another source for the chips and had to accept the price increase. The report also listed the number of processors that Apple has bought from Samsung, a staggering amount of 130 million chips last year and more than 200 million this year. That price increase is going to sting a little with those numbers.

Now this could just be a purely business move, reflecting changes in the supply and demand chain between Apple and Samsung. And it’s definitely a lucrative move for Samsung, because Apple has no choice but to buy the chips from Samsung, at least until 2014 when Samsung’s contract to sell processors to Apple ends. But hopefully I’m not too crazy in thinking that Apple’s constant litigation against Samsung might have played a small part in Samsung’s price hike.

source: MarketWatch

Samsung raises processor cost on Apple by 20%

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