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Forums - General Discussion - Samsung raises processor price by 20% on Apple

Galaki on 13 November 2012

source

Apple Learns That Suing A Key Supplier May Not Be So Smart; Samsung Jacks Up Prices On Apple

from the oh-look-at-that dept

Apple may be happy it won the first round of its patent fight against Samsung in the US (it's not faring quite so well elsewhere around the globe), but these things have consequences. Besides being a competitor, Samsung is also a key Apple supplier... and it appears that Samsung is now using that to its advantage, jacking up the price on a mobile processor supplied to Apple by 20%. The report notes that Apple pushed back initially, but after realizing it couldn't find a reasonable replacement, agreed to the new prices.

According to the report, Apple buys all APs used for production of iPhone and iPad from Samsung Electronics with the volume estimated to be 130 million units last year and more than 200 million units this year.

Samsung Electronics has a long-term contract to supply APs to Apple until 2014, the report added.
So even if Samsung has to pay Apple for patent infringement, perhaps it'll be financed by the higher prices on processors Samsung sells Apple.

Maybe, next time, instead of suing each other, they could just focus on building products people like and letting the market sort the rest out.

Well, it looks like all those rounded corners are paying themselves off.



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UltimateUnknown on 13 November 2012

looooooooooooool well played Samsung. This will probably get SS much more than the 1 billion they payed Apple.

Apple just got counter-trolled.



 

Chandler on 13 November 2012

So Apple is paying it's own patent infringment compensation.

http://www.youtube.com/watch?v=kdhhQhqi_AE



Ongoing bet with think-man: He wins if MH4 releases in any shape or form on PSV in 2013, I win if it doesn't.

theRepublic on 13 November 2012

What the hell was Apple thinking? This is the first thing that came to my mind when I saw this lawsuit.



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Vinniegambini on 13 November 2012

Good on Samsung :)



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Soundwave on 13 November 2012

Funny on Samsung, but they should be careful, Apple is likely looking at dumping them entirely and that will be a big business loss for them.



jlrx on 13 November 2012
Soundwave said:
Funny on Samsung, but they should be careful, Apple is likely looking at dumping them entirely and that will be a big business loss for them.


Samsung is a mega gigantic company and while Apple trying to dump them might hurt, I doubt it would have a major affect on them as a whole.



Galaki on 13 November 2012
Soundwave said:
Funny on Samsung, but they should be careful, Apple is likely looking at dumping them entirely and that will be a big business loss for them.

If you read the OP, Apple did look around but found nothing.



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Kynes on 13 November 2012
Galaki said:
Soundwave said:
Funny on Samsung, but they should be careful, Apple is likely looking at dumping them entirely and that will be a big business loss for them.

If you read the OP, Apple did look around but found nothing.


AFAIK they have been testing TSMC, but it doesn't seem to be able to provide Apple before 2015. TSMC is testing 450mm wafer production, to increase the number of good chips per wafer and that way increase production and reduce cost per good chip, but it seems they have delayed it until 2018, and they seem to be capacity constrained with nVidia, AMD and Xilinx at the moment. I'm sure they can't provide Apple those 200 million chips per year without negating other customers those wafer starts.

Samsung also sells Apple flash memory, and screens, so it was a really bad decision to sue them.



babuks on 13 November 2012

I got a question: who is bigger and larger - Apple or Samsung?