Apple Faces Samsung Mobile Processor Price Hike

by Mike on November 12, 2012

Apple A6 Processor - Faster performance

It’s only business is a phrase that is sometimes used to justify unusual business decisions and the relationship between Apple and Samsung can be described as anything but normal. Because the two companies rely upon one another, we’ve seen them feud publicly through bitter legal disputes, yet at the same time, they’ve maintained their working relationship.

On the legal side, Apple was able to take Samsung to court to win an award of approximately $1 billion US but this case is not finished yet as Samsung wants the results thrown out due to jury misconduct. In Europe, Samsung has had its own share of wins against Apple with the Cupertino company having to take out apology ads in large newspapers to state that Samsung did not infringe on Apple’s tablet patents.

Even with all of this going on, business has continued between the two companies but it appears that changes have now taken place on this front as well. A new source has revealed that Samsung has raised the price of mobile processors that it supplies to Apple by as much as 20%. Initially, Apple declined to pay the higher processor prices but seeing as the company was unable to source a new supplier, they had no alternative but to ultimately accept. In the past year, Apple is believed to have purchased 130 million mobile CPUs and this number has gone up to 200 million in 2012. Will this result in higher prices for the consumer, or will Apple maintain their current pricing and take a hit on profits? It’s not known at this time, but we’ll see how this story plays out.

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