In a move that proves just how interconnected mobile manufacturing really is, even among competitors, Samsung has announced a 20-percent increase in the price of the processors they supply to Apple. Korean newspaper Chosum Ilbo reported the price hike this morning, and included a quote from someone familiar with the negotiations between the two mobile giants:
“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.)”
The report from which the source gathered their information also stated that the price increase will be reflected in products shortly. Samsung supplied 130 million processors to Apple last year for their iPhone and iPad product lines, and are expected to increase that number to 200 million this year. Although the A6 and A6X chips are custom Apple designs, they are contracted with Samsung for production. The contract for Samsung to provide the processors is in place until at least 2014.
There was no comment from Samsung or Apple regarding the leaked price hike information.
Source: Chosun Ilbo via MarketWatch
Kody Frazier is a freelance journalist focused primarily on mobile technology.