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Samsung processor prices up 20%, Apple gear takes the brunt of the rise

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iPad-Mini-03.pngSamsung are about to hike the prices of their processors up by 20%, putting Apple, one of their key customers and rivals, out of pocket.

According to the Wall Street Journal, a "person familiar with negotiations between the two tech giants" suggested that the added expense will only apply to chips ordered by the Cupertino firm.

"Samsung Electronics recently asked Apple for a significant price raise in (the mobile processor known as) application processor," said the source.

"Apple first disapproved it, but finding no replacement supplier, it accepted the [increase]."

With Apple shifting 130 million units using the Samsung chips last year, and expected to hit 200 million sales by the end of this financial year, there will be significantly more loose change in Samsung's pockets soon.

Apple will be tied to the inflated cost until at least 2014, when the contract ends, after which further negotiations will be needed, or Apple will have to find an alternative processor supplier.

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  • $22302037

    Apple starting to reap the rewards of its unnecessarily adversarial approach to its rivals. Waste of energy, money and focus which will hurt them more and more as time goes by. For me it's a shame because I like and use Apple products. It was too good to last....

  • Apple does generally make more of a profit on its hardware than Android manufacturers do. This should level the playing field somewhat.

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