Samsung raises processor cost on Apple by 20%


As many of you know, Samsung supplies several important pieces to some of Apple’s devices, including the processors.  Recently, Samsung decided to ask 20% more for the cost of those processors. According to sources, Apple disapproved at first, but they could not find another source for the chips and had to accept the price increase. The report also listed the number of processors that Apple has bought from Samsung, a staggering amount of 130 million chips last year and more than 200 million this year. That price increase is going to sting a little with those numbers.

Now this could just be a purely business move, reflecting changes in the supply and demand chain between Apple and Samsung. And it’s definitely a lucrative move for Samsung, because Apple has no choice but to buy the chips from Samsung, at least until 2014 when Samsung’s contract to sell processors to Apple ends. But hopefully I’m not too crazy in thinking that Apple’s constant litigation against Samsung might have played a small part in Samsung’s price hike.

source: MarketWatch

  • Kary

    Don’t bite the hand that feeds your supply!

  • RTWright

    All I have to say is, Apple was asking for this. You can’t go around suing the company that supplies you without it biting you back at some point. You want to play the money game? Samsung is showing it has other ways of getting their money back out of Apple and they as stated, have little choice but to deal with it till the contracts run out. They should have thought about that a long time ago. Just because YOU design something, it’s not your technology MAKING it when you’re not the designer and manufacture of your own goods. That is Samsung’s Technology make your product happen, so, yeah they’re going to fight back in ways other than litigation. Quite frankly I’d taken the loss and tore up their contract and shoved it where the sun doesn’t shine a long time ago. But this is just as good.



  • r121

    Apple accounts for less than 10% of Samsung’s revenue. Small it is, considering Apple the biggest electronics buyer.