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Apple Hit with 20% Price Increase on Application Processors by Samsung

Nov 12 2012, 12:59pm CST | by , in Rumors | Apple

Apple Hit with 20% Price Increase on Application Processors by Samsung
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Samsung ups the price on Apple

Apple and Samsung had been battling in courts around the world over patent infringement among other things. One thing that continues to surprise many people is that despite the nasty patent suits going on between the two companies, they continue to work together in the electronics environment. A source cited by Market Watch reports that Samsung has hit Apple with a significant increase on the application processors it provides for the iPhone and iPad.

The source claims that Samsung told Apple it was increasing prices by 20%. Apple initially refused to pay the price increase and started seeking an alternative provider. However, the source, who claims to be familiar with the negotiations, says that Apple was unable to find an alternative and agreed to pay the price increase.

Samsung is the exclusive provider of processors for the Apple iPhone and iPad. The source claims that Apple purchased 130 million processors from Samsung last year and will purchase more than 200 million units from Samsung this year. The source also claims that Samsung has a long-term contract in place with Apple that lasts until 2014.

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