Samsung Reportedly Hits Apple with 20% Price Increase for iOS Device Chips

[MacRumors]

MarketWatch reports on an article from Korean newspaper Chosun Ilbo claiming that Samsung has hit Apple with a 20% price increase on the A-series chips used to power Apple's iOS devices.

"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.)"

The two firms have started to reflect the new supply price recently, the report added, citing the same person.

While Apple's latest A6 and A6X chips are custom designs from the company's in-house chip team, Samsung continues to serve as the foundry for manufacturing the chips used throughout Apple's iOS device lineup.

A bill of materials estimate for the iPhone 5 pegged the cost of the A6 chip at approximately $17.50, meaning that a 20% increase in price would translate to roughly $3.50 in increased costs per unit for Apple.

Apple has been reported several times in recent years to be attempting to move chip production to TSMC, but so far the company has been unwilling or unable to make the switch. TSMC's upcoming 20-nanometer process targeted for mass production in late 2013 could, however, serve as a catalyst for a move.

Article Link: Samsung Reportedly Hits Apple with 20% Price Increase for iOS Device Chips

[HishamAkhtar]

Hey Tim, how's Apple's thermonuclear war going?

[marksman]

Originally Posted by HishamAkhtar

Hey Tim, how's Apple's thermonuclear war going?

120 billion in the bank, I suspect it will go well as Apple migrates off of Samsung and Samsung loses their biggest customer.

[dreadnort]

Originally Posted by marksman

120 billion in the bank, I suspect it will go well as Apple migrates off of Samsung and Samsung loses their biggest customer.

sorry Samsung Global are their biggest customer

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Originally Posted by iGrip

Samsung has basically just stolen everything from Apple at this point. Samsung will NOT "be more stronger" - it will be more weaker.

Samsung tries to build anything and everything in the world. They even make the garbage trucks to cart it all away after it breaks. Apple focuses like a laser on nothing but insanely great products and then recycles them responsibly.

{phones rings}"hello" "It's for you" Your village just called they need their idot back"

[hamkor04]

Originally Posted by HishamAkhtar

Hey Tim, how's Apple's thermonuclear war going?

friendly fire???

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Originally Posted by wordoflife

At some point Apple will just find a new supplier and it'll hurt Samsung more in the end.

Good job.

actually, they looking and trying to replace Sumsung completely but, it's costing Apple much than expected.
And it's very normal move from Samsung.

[iGrip]

Originally Posted by HishamAkhtar

Hey Tim, how's Apple's thermonuclear war going?

Well, the one billion dollars that Apple won from Samsung goes a long way towards helping with the extra seventeen billion Apple is now going to pay to Samsung.

[Sky Blue]

got to get that $1 Billion back some how!

[Aluminum213]

Originally Posted by Sky Blue

got to get that $1 Billion back some how!

this, Samsung just got back its billion dollar loss

[dethmaShine]

1. Seems fairly legal.
2. Fair as this is the first time they have increased the costs in the last 5 years according to my information.
3. 20% is steep in any conceivable manner.
4. This is probably true as they would want those billion dollars back (which they haven't paid yet).
5. Will reach to further negotiations in my opinion. 1/5th is high but I assume 1/7ths or 1/8ths will be appreciated.

[SeniorGato1]

Originally Posted by Aluminum213

this, Samsung just got back its billion dollar loss

1 billion / 3.50 = 285 million iphones to break even. That's not going to happen, but Samsung's on the right track!

[samcraig]

Originally Posted by SeniorGato1

1 billion / 3.50 = 285 million iphones to break even. That's not going to happen, but Samsung's on the right track!

There's nothing to make back. Samsung hasn't had to pay Apple a dime as of current.

[itr81]

Originally Posted by samcraig

There's nothing to make back. Samsung hasn't had to pay Apple a dime as of current.

I bet they are both paying thru the noses for lawyer fees. I bet some of the lawyers are making millions a yr just for representing Samsung or Apple in these cases.

[compguy]

Originally Posted by Aluminum213

this, Samsung just got back its billion dollar loss

Samsung hasn't paid $1B to Apple. These things take a lot longer than a single court ruling. This will be drawn out for quite some time and the most recent news is that Judge Koh is going to hear statements from Samsung questioning the jury foreman's integrity. For all we know, the entire thing could be overturned and started all over again.

[Muscle Master]

I love it...

[bawbac]

Originally Posted by Sky Blue

got to get that $1 Billion back some how!

Last I heard Samsung is not paying anything.

[Nathan20]

Making up for the court case loss.

[wordoflife]

At some point Apple will just find a new supplier and it'll hurt Samsung more in the end.

Good job.

[The Phazer]

Originally Posted by wordoflife

At some point Apple will just find a new supplier and it'll hurt Samsung more in the end.

Good job.

Apple patently already have.

So given that Samsung may as well milk them for every penny in the meantime.

[MasterHowl]

These big companies are so petty.

I wish they'd focus more on innovation and bringing out cool new tech rather than trying to screw each other over...

[g0odfr1end102]

Originally Posted by MasterHowl

These big companies are so petty.

I wish they'd focus more on innovation and bringing out cool new tech rather than trying to screw each other over...

AMEN to that!

[rockarollr]

Originally Posted by MasterHowl

These big companies are so petty.

I wish they'd focus more on innovation and bringing out cool new tech rather than trying to screw each other over...

That's EVERY company nowadays. Hell, most PEOPLE follow the same mindset these days. "Screw everyone else over - it's the new way to get ahead!" should be planet Earth's slogan.

[jrswizzle]

This notion that everyone should work together and be happy is nice - but ultimately not how a fallen world works.

I couldn't care less about this stuff, so long as my iPhones, iPads and Macs continue to function as they currently do relative to the competition and the service I currently receive and expect continues to be exemplary.

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Originally Posted by samcraig

No - it's one question - which flavor of the three do you want. How is that three questions. Are you really going to argue that I am asking for an answer to each flavor? A computer might process logic like that. People don't. That's sort of what makes us - you know - human.

Define love. Is there a right or wrong answer?

Was the movie I saw last night good or bad. Or perhaps YOU want me to break down a list of 1000 criteria points and answer yes or no to every one and then add up which is greater?

Who thinks like that? Seriously?

You're both right. Ultimately one deciding between three flavors is a yes to one and no to the other two. While your mind consciously may operate as if its a choice between three options, at the base of that decision lies three yes or no questions.

Computers work the same way. We don't see all of the "yes/no" questions being decided at the base level - we only see the end results/queries which most of the time seem far more complex.

What makes us human is the introduction of "feelings" which influence our decision making process. The capability to feel emotion toward something is what separates the data processing of the human brain from the data processing of the world's largest supercomputer. Still doesn't negate the fact that decisions at their basest form are comprised of "yes/no" questions.

[samcraig]

Ok - let's look at this from another angle.

You have to have clear definitions of all choices to be able to say yes or no to. The problem is- in the world - words and definitions aren't defined the same way. There's interpretation based on life experience, gender, political leanings, geography, culture, etc and so on.

So I defer back to my statement. The world does not operate in black and white. You can argue that individuals might. I would still disagree. But at least you'd have an argument. But when talking about the world's population - it's not a simple yes/no. Unless you survey every single person and then take the majority as a rule. Only problem is - then there are people who won't/don't accept that as the rule. So there's nothing binary about it. Is there?

Originally Posted by jrswizzle

This notion that everyone should work together and be happy is nice - but ultimately not how a fallen world works.

I couldn't care less about this stuff, so long as my iPhones, iPads and Macs continue to function as they currently do relative to the competition and the service I currently receive and expect continues to be exemplary.

----------



You're both right. Ultimately one deciding between three flavors is a yes to one and no to the other two. While your mind consciously may operate as if its a choice between three options, at the base of that decision lies three yes or no questions.

Computers work the same way. We don't see all of the "yes/no" questions being decided at the base level - we only see the end results/queries which most of the time seem far more complex.

[hamkor04]

Originally Posted by MasterHowl

These big companies are so petty.

I wish they'd focus more on innovation and bringing out cool new tech rather than trying to screw each other over...

they need money and power for that, so that would be "marketing principles" for them, sadly.

[MrT8064]

Slightest hint that Apple will switch to another supplier, Samsung put's price up as Apple are totally dependant at the moment. Clever, I guess.