Samsung tacks on 20% price hike on Apple processors

Written by Russell Co. Posted in Components, News, Smartphones, Tablets

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Published on November 13, 2012 with No Comments

Samsung reportedly raised the price of the mobile processors they supplied to Apple, reported Market Watch, according to a Korean newspaper article in Chosun Ilbo.

“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.)”

Currently Apple buys all of its A-series chips that it uses in its iPhone and iPad from Samsung, estimated at more than 200 million units this year. According to iSuppli’s teardown report on the iPhone 5, the A6 Processor costs $17.50. A 20% price increase would be around $3.50 per unit.

Samsung has had a long-term contract to supply A-series chips to Apple until 2014.

 

 

Source: Market Watch