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Samsung Increases Price For Apple's Processors

By - Source: Wall Street Journal | B 74 comments

Apple has no choice but to accept price increase.

With the two technology giants locked in a variety of lawsuits around the globe, Samsung is said to have increased the price of its processors made for Apple by 20 percent.

If true, the latter has no choice but to adhere to the price increase as Samsung is purportedly the only company who can deliver the quantity of components Apple requires.

The Wall Street Journal cites a source who is "familiar with negotiations between the two tech giants". The source stated: "Samsung Electronics recently asked Apple for a significant price raise in (the mobile processor known as) application processor. Apple first disapproved it, but finding no replacement supplier, it accepted the [increase]."

With the price increase, Samsung is expected to pocket a healthy amount of profit. Estimates suggests that Apple ordered 130 million processors last year, with the figure set to exceed 200 million in 2012 due to the launch of the iPhone 5, iPad 4 and iPad Mini.

Apple will have to pay the inflated price until at least 2014, which is said to be when the contract between the two fierce rivals ends.

As for Samsung supplying displays to Apple, the firm denied it terminated its contract with Apple, despite initial reports suggesting otherwise.

 

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Top Comments
  • 51 Hide
    nah51dog , November 13, 2012 11:25 PM
    haha apple! dont shit where you eat
  • 47 Hide
    bllue , November 13, 2012 11:28 PM
    Best news I heard all day
  • 46 Hide
    Azn Cracker , November 13, 2012 11:32 PM
    lol thats why you don't sue someone you depend on
Other Comments
  • 51 Hide
    nah51dog , November 13, 2012 11:25 PM
    haha apple! dont shit where you eat
  • 47 Hide
    bllue , November 13, 2012 11:28 PM
    Best news I heard all day
  • 46 Hide
    Azn Cracker , November 13, 2012 11:32 PM
    lol thats why you don't sue someone you depend on
  • 38 Hide
    Anonymous , November 13, 2012 11:33 PM
    good job samsung, 20% is not enough! lets raise 100% because apple cant find other replacement
  • 31 Hide
    wardoc22 , November 13, 2012 11:35 PM
    Lol
  • 30 Hide
    ipwn3r456 , November 13, 2012 11:36 PM
    So, will the all the apple products will raise their price too?
  • 27 Hide
    chibiwings , November 13, 2012 11:38 PM
    business as usual lol
  • 17 Hide
    robochump , November 13, 2012 11:41 PM
    ipwn3r456So, will the all the apple products will raise their price too?


    Apple will lose profits and eat the additional production costs. Asian companies have a major advantage with local talent able to help manufacture electronic components so cheaply. I hope Apple will work with a US chip company but highly doubt it.
  • 17 Hide
    StormOfRazors , November 13, 2012 11:43 PM
    Might help recoup some of the money they had to pay in the court case, but this constant bickering between Apple and Samsung involving lawsuits cannot be good for either company in terms of public opinion.
  • 30 Hide
    house70 , November 13, 2012 11:46 PM
    Apple will pass on the expense to the flock. I mean, the consumers....
  • 29 Hide
    kracker , November 13, 2012 11:48 PM
    HAHAHA! Best thing I've heard today!

    Apple, you don't want to upset your providers ;) 
  • 31 Hide
    _Cubase_ , November 13, 2012 11:50 PM
    So, pretty much Apple is now paying for Samsung's lawsuits? Brilliant!
  • 22 Hide
    alexthager , November 13, 2012 11:54 PM
    I'm not an Apple hater, but this is hilarious.
  • 19 Hide
    cbfelterbush , November 13, 2012 11:57 PM
    !!SHOCKER!!

    Serves that grubby, entitled, ass hat wearing company right. Some might have thought that because Apple had entered into the chip design business that they were going to start to fab those chips as well. However its one thing to Build things, another all-together to simply design them. Apple knows this all to well now.

    They will perhaps try to start making their own hardware, but that time is a Very long way into the future. A future that today, because of this action, just got a little better.

    -CB
  • 26 Hide
    nodeffect , November 13, 2012 11:59 PM
    If you f*ck with someone you depend on, you're gonna have a bad time.
  • 22 Hide
    bin1127 , November 14, 2012 12:00 AM
    lol I guess apple is paying itself the 1 billion in lawsuit damages.
  • 21 Hide
    Darkerson , November 14, 2012 12:04 AM
    I find the bitter irony of this all that much sweeter. Apple has been shitting all over Samsung for a while now, yet at the same time depending on them for a lot of things. Its about time they got a taste of their own turd sandwich! How does it taste, Apple?
  • 18 Hide
    warmon6 , November 14, 2012 12:27 AM
    robochumpLol...bitter much?!? But funny how most of you think Samsung is just an innocent company, thats just as funny!


    Nobody is saying Samsung is a "innocent company" but apple did sue someone that supplies them with parts (As the saying, Dont bite the hand that feeds you!)


    Although apple has sued on a lot of stupid stuff....
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