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News from the front line of the Apple-Samsung war, and Samsung, fresh off the back of winning more money back from Apple in the UK, is sticking the knife in by jacking up processor prices for Apple by 20%.
According to the WSJ, a person “familiar with negotiations” between the two behemoths suggested that the price rise only applies to chips being shipped to sunny Cupertino – which just goes to show that this isn’t Samsung responding to rising costs or whatnot, but simply trying to stick one to their American rivals. By contract, Apple are stuck with Samsung as one of their processor manufacturers ’till 2014, and even then there aren’t any other factories that come close to matching Samsung in terms of output and quality – Apple shipped 130 million units that use Samsung chips last year.
So, the real question for us end-users is: will Apple will let the price hike eat into their astronomical margins, or are we going to see a corresponding rise in the price of shiny iDevices? Either way, one thing’s for sure – Samsung’s gonna have a bit more petty cash at the end of the day. [Marketwatch via TechDigest]
Image credit: Armwrestle from Shutterstock
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Oh Apple, if only you had just posted a simple apology for everyone to see.
There are lots of Arm Manufacturers out there…
Apple uses Samsung because of the quantity and quality of production as well as price. Of course they are always looking elsewhere and I’m sure that representatives from those other fabs will be trying to woo Apple all the more now this has happened.
Arm manufacturers?!
Is this going to get physical?
“According to the WSJ, a person “familiar with negotiations” between the two behemoths suggested that the price rise only applies to chips being shipped to sunny Cupertino – which just goes to show that this isn’t Samsung responding to rising costs or whatnot, but simply trying to stick one to their American rivals” – what nonsense. Samsung just spent $4 Billion renovating and updating a chip plant in Texas that produces (amongst other things) Apples chips. Isn’t there enough fanboy nonsense here without starting MORE arguments.
But, but, but……
APPLE!!!!!!!!!!!!
Yes? What about them?
Sooo basically Samsung is getting their money back they are paying to Apple for the patent infringement. Nobody really loses out
What about the sheeple who buy the over inflated…
Nope, you’re right, no one loses out!
According to the sources, the higher price isn’t being charged to chips being shipped to Cupertino, but rather chips “ordered by the Cupertino firm” which is a very different thing altogether.
But that aside, it doesn’t necessarily mean that Samsung are using this to attack Apple. There are any number of reasons which could have caused an increase, for example if Apple changed volumes, quality requirements, manufacturing process, payment terms, packaging and shipment requirements etc. It could be that Apple requested different duty process or that another company that used to share the Apple chip facility no longer use it thus placing full costs on Apple. It could also be that Apple made changes to the chips that required retooling and amortised the cost of the tooling rather than pay upfront costs.
Shame on Samsung!!…shame on them for only increasing it by 20%
What a stupid business move. What are Samsung going to to with all that extra capacity when Apple stop buying their chips and screens? Hope Nokia suddenly become real popular?
Geniuses.
Didn’t it get reported that Apple were cutting down on orders from Samsung? The reduction in volume might explain the rise in price.
There was a report about it. We all know Apple is moving elsewhere, all Samsung’s doing is trying to speed that up. So I’m sure even with a price hike, they’re making less due to the amount of chips Apple are buying elsewhere.
But, what’s also funny is earlier on this year after the big “win” for Apple, Samsung stood up and said they being professional and keeping Samsung Mobile separate from Samsung Electronics. Quite a few people here were saying that it was a good move by Samsung.
Now however, everyone has changed their minds. It’s quite funny how people’s heads turn so quickly.
They probably are still being professional, it might just be that due to lower orders prices have to rise and people are latching onto that and going,” Neeeerrrr! See! They’re all so childish!”