Samsung Wants More Money From Apple

[Maura]

AppleInsider reports that Samsung has apparently put its prices up for its mobile processors, for Apple alone. Reporting on the price hike, MarketWatch says that according to anonymous sources, Samsung has increased the price of its chips, such as the iPhone 5’s A6 chip and the fourth-gen iPad’s A6X processor, by 20%. As you might imagine, Apple initially refused to pay the extra, but was not able to find anyone else to make the chips that it requires. Interestingly enough, the chips are made at Samsung’s plant in Austin, Texas. As AppleInsider notes, recent rumours have said that Apple has been trying to move its chip production away from Samsung, and Samsung has even been expecting to lose some of its Apple chip orders, but it seems that this is not about to happen anytime soon. Apple has even hired a former Samsung chip designer, Jim Mergard, but it doesn’t look like it is ready to go with its own chips just yet.

Source: Samsung reportedly hits Apple with 20% price increase for iPhone, iPad chips

 

[KevinJS]

Doesn't American law have a word for this?

Antitrust is the word, I believe. I imagine the lawyers are going into a huddle already.

 

[AdmiralAdama]

I read that based on iPhone 5 tear downs, the price of the A6 chip is $17.50 per. A 20% bump adds about $3.50 per unit. Hardly a hostage taking.

AA

Sent from my iPhone using iPF

 

[AQ_OC]

I wish they would quit the silliness and get back to innovating.

 

[s2mikey]

I wish they would quit the silliness and get back to innovating.

I agree. That goes for both of them.

 

[thewitt]

Doesn't American law have a word for this?

Antitrust is the word, I believe. I imagine the lawyers are going into a huddle already.

This is not antitrust.

Apple owns the design. They only contract with Samsung to manufacture it, by choice. Samsung raised the price at the end of the last contract period. Now Apple needs to decide if they will continue paying the price or if they will take the design to another semiconductor manufacturer.

 

[iJamesH]

Well this doesn't surprise me considering the bad blood these 2 companies are having with each other lately. I mean did you expect Samsung after losing the court case was just going to lie around and do nothing?

A case of 2 companies acting like spoiled brats IMHO.

 

[KevinJS]

This is not antitrust.

Apple owns the design. They only contract with Samsung to manufacture it, by choice. Samsung raised the price at the end of the last contract period. Now Apple needs to decide if they will continue paying the price or if they will take the design to another semiconductor manufacturer.

Thanks for that info. I thought (assumed) that it was Samsung's design that Apple was having to buy. I understand the difference now.

Sent from my iPhone using iPF