Samsung to Raise Prices on Apple Chips

Market Watch is reporting today that Samsung Electronics raised the price of the mobile processors it supplies to Apple by 20 percent. This news comes on the heals of Apple’s recent stunt with regards to its forced UK apology. Is Samsung trying to punish its largest chipset customer? Or is it just to difficult to make the faster processor at the price that Apple was paying before?

According to Market Watch, an unnamed source familiar with the contract between Apple and Samsung told Chosun Ilbo that the latter already hiked up the cost of mobile processors, much to its Frienemy’s chagrin.

“Samsung Electronics recently asked Apple for a significant price raise in (the mobile processor known as) application processor,” the unnamed source was quoted as saying. “Apple first disapproved it, but finding no replacement supplier, it accepted the (increase.)”

We’ve heard rumors lately that Apple has been looking for new chip partners in an effort to cut ties with Samsung. In mid-October, a senior executive told the Korean Times that Samsung did not participate in the design of the iPhone 5’s A6 processor and the chipmaker is now nothing more than the manufacturer of the units. However,  during its fourth-quarter earnings call, Apple CEO, Tim Cook, told investors that its relationship with Samsung has not changed.

Samsung’s decision to increase the cost of the mobile processor may or may not be in relation to Apple’s controversial apology in the UK. Recently, the iPad maker has come under fire for its less-than-sincere forced apology to Samsung regarding the recent patent infringement ruling.

The first time Apple posted a statement to its website, the information was considered “incorrect and untrue” by UK Judge Robin Jacobs. The company was then forced to rewrite the notice and post it directly on the front page of their UK website. Then, Apple pushed things even further by following directions but added a bit of coding to make it difficult to see the notice without some extra work on the part of the reader.

It is possible that Samsung is trying to “get back” at Apple for their antics, but it is more likely that the former knows it has the iPad maker in its grip and can charge more because no one else can make the processor chip in the capacity that Samsung can.

email

About Lory: Writer of all things app related, traveler of the space-time continuum, baker of really great cookies. Follow me @appaholik