For Apple, Samsung processor price increases by 20%

Ry

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Nov 16, 2010
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SAMSUNG IS FORCING APPLE TO PAY 20% PREMIUM FOR MOBILE PROCESSORSr

Call it payback for all the courtroom litigation that Apple has forced onto Samsungfor copying its designs. According to MarketWatch, Samsung has effectively forced Apple to pay 20% more for mobile processors. ?Apple first disapproved it, but finding no replacement supplier, it accepted the [increase],? said one of MarketWatch?s anonymous sources. Samsung will reportedly provide mobile processors to Apple until 2014 under the companies? current agreement. One of Apple?s greatest assets is its ability to control the supply chain, but it looks like Samsung won out this time. Until Apple can find another mass producer for the chips it now designs entirely in-house, it apparently has no other choice but to pay the premium to Samsung.
 
So they are either going to pay Apple with their own money, or collect big time if the ruling is overturned. Either way, prices go up for iPhones...
 
Hopefully this is legitimate increased operating costs and just more noise from the press, but if Sammy is really trying to punish Apple, I see it as a dumb, short term move. It will simply put more impetus on Apple to complete the move to Taiwan Semiconductor and Sammy will be out a huge customer.

That's probably going to happen anyway, so Samsung sees this as their Swan Song to Apple. Milk it while they still can.

Sent from my Samsung Galaxy S3
 
So sad without Steve Jobs that's why I am switching now to Android.

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