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.
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.