Samsung Reportedly Raises Prices On Apple For Mobile Components

Well it looks like the there is no end to the drama between Samsung and Apple. Months following the precedent setting trial this past summer, reports out of South Korea indicate that Samsung has thrown a new twist into their relationship with Apple. Just yesterday, Chosun Ilbo reported that Samsung raised the price that it charges Apple for mobile processors, according to Marketwatch.

Last year alone Apple reportedly purchased 130 million mobile processors from Samsung, and this year, the Cupertino based company purchased 200 million. Although details were not divulged as to how much of an increase Samsung has issued, its easy to understand how much money Samsung could potentially make off of a price hike. Perhaps this is in an effort to counter as much of the loss Samsung took on the the $1 billion verdict against them.

Please keep in mind that price changes on components isn’t anything out of the ordinary or controversial. This does happen frequently enough that could be due to increased costs on Samsung’s part. But when you take into consideration the last few months following the trial verdict its not hard to see Samsung trying to stick it to Apple.

In this case, it’s very likely that Apple has no other choice — it’s not clear any other supplier could churn out as many mobile processors as Samsung can or, even if that was possible, if Apple could make the switch so quickly. The original report quotes an unnamed source who says:

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

DroidDog will continue to monitor over any Samsung and Apple updates.


Tags: , , , , ,