Apple Facing 20 Percent Price Hike on Samsung Processors | News & Opinion |

Apple is getting to find out what happens when you attack your suppliers…

Apple is going to have to dig a little deeper into its pockets for every iPhone and iPad it produces, according to a new report.

MarketWatch, citing South Korean daily newspaper Chosun Ilbo, reported on Sunday that Samsung has increased the price of mobile processors supplied to Apple for use in its iDevices by 20 percent. Chosun Ilbo apparently heard about the price hike from an unnamed person familiar with negotiations between Apple and Samsung.

“Samsung Electronics recently asked Apple for a significant price raise in (the mobile processor known as) application processor,” the source said, according to MarketWatch.

As could be expected, the new price didn’t initially sit well with Apple. “Apple first disapproved it, but finding no replacement supplier, it accepted the (increase),” the source added.

via Apple Facing 20 Percent Price Hike on Samsung Processors | News & Opinion |

I must say that it really wasn’t smart for Apple to attack Samsung over the design of some of their older phones, sure they got some money from Samsung in the US and Germany, but now they’re probably going to pay it back with higher fees from Samsung, which is a major supplier of parts for the iPhone and iPad.  I wonder what’s going to happen next.



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