Samsung 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.