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Samsung will reportedly raise Apple processor price by 20%

BusinessNews
by Oluseun Alufa
, 12 Nov 2012News
Samsung will reportedly raise Apple processor price by 20%

Samsung is set to increase its price for the manufacture of Apple’s A-series processors by 20 per cent, reports Chosun Ilbo. This will be the first time the South Korean firm has sought to hike the price of the application processor supplied for the rival US firm.

Apple has taken steps to separate itself from Samsung as the two tech titans' relationship continues to sour in the midst of a stream of patent lawsuits. The Cupertino-based company has been reported to be in the process of adding to its sourcing portfolio for a few months now as it now receives shipments of RAM and flash storage from other suppliers alongside Samsung.

Yet Apple is expected to remain bound to its Asian rivals with no one else is able to match its production volume. Last year saw Samsung produce an estimated 130 million units, and 200 million units have been served up this year.

"Apple first disapproved it, but finding no replacement supplier, it accepted the increase," said an anonymous source to Chosun.

The original article did not provide a reason for the price hike, however a recent Samsung investment of $4 billion (£2.5 billion) in a Texan factory that acts as the main hub for the creation of Apple’s mobile processors may be a contributing factor.The price mark up might be a means to subsidise the retrofitting of the Austin facility according to the Verge.

Samsung is contracted to supply Apple chips until 2014.

Translation via WSJ Marketwatch

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