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

Discussion in ' News Discussion' started by MacRumors, Nov 12, 2012.

  1. MacRumors macrumors bot


    Apr 12, 2001

    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.
    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
  2. HishamAkhtar macrumors 6502a

    Oct 22, 2011
    Hey Tim, how's Apple's thermonuclear war going?
  3. Sky Blue Guest

    Sky Blue

    Jan 8, 2005
  4. Nathan20 macrumors regular

    Jul 19, 2012
  5. wordoflife macrumors 604


    Jul 6, 2009
    At some point Apple will just find a new supplier and it'll hurt Samsung more in the end.

    Good job.
  6. Aluminum213 macrumors 68030


    Mar 16, 2012
    this, Samsung just got back its billion dollar loss
  7. The Phazer macrumors 68030

    Oct 31, 2007
    London, UK
    Apple patently already have.

    So given that Samsung may as well milk them for every penny in the meantime.
  8. MasterHowl macrumors 65816


    Oct 3, 2010
    North of England
    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...
  9. MrT8064 macrumors 6502a


    Jun 7, 2006
    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.
  10. Aluminum213 macrumors 68030


    Mar 16, 2012
    if there was one Apple would have done so a loooooong time ago and if Apple could in the near future Samsung wouldn't have done this
  11. the8thark macrumors 68040


    Apr 18, 2011
    This makes Apple more likely to hasten their move away from Samsung. if this rumour is true. And Apple away from Samaung = $0 for Samaung as they won't be buying parts from Samsung anymore.

    Lesson Samsung needs to learn.
    "Don't bite the hand that feeds you cause one day the hand will stop feeding you if you keep biting it".
  12. paulbennett95 macrumors 6502a


    Aug 30, 2012
    Long Island, NY
    I can't wait to see what happens to Samsung after apple stops using them for components. A lot less money for Samsung to "innovate" with, hah.
  13. dethmaShine macrumors 68000

    Apr 13, 2010
    Into the lungs of Hell
    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.
  14. Sora macrumors 6502


    Oct 23, 2007
    Arlington, VA
    The customer won't notice this increase.
    Pricing structure is already engrained into Apple's customer base.
  15. JaySoul macrumors 68000


    Jan 30, 2008
    Samsung and Apple should buy a kitten together.
  16. urkel macrumors 68030

    Nov 3, 2008
    Once again, Apples selfish and petty wars with former partners results in hurting their own customers.
  17. charlesdayton macrumors 6502a

    Oct 24, 2011
    This is a bad move for Samsung.

    Apple is reducing their dependence on Samsung and buying from other suppliers. Plus Apple is one of Samsung's largest client.
  18. Ries macrumors 65816

    Apr 21, 2007
    What makes you think, that the others can do it cheaper?
  19. macchiato2009 macrumors 65816

    Aug 14, 2009
    Samsung has decided to squeeze the apple to get as much as juice as possible until it gets dumped
  20. Hellhammer Moderator


    Staff Member

    Dec 10, 2008
    That's the lesson Apple needs to learn. Samsung produces everything from LCDs to NAND and SoCs which makes them independent, whereas Apple doesn't own a single factory. Without Samsung, Apple couldn't make a single iPhone or iPad but Samsung would do just fine without Apple, so who is feeding who?
  21. Muscle Master, Nov 12, 2012
    Last edited: Nov 12, 2012
  22. urkel macrumors 68030

    Nov 3, 2008
    Something that a lot of people are missing is that Google, Samsung and Apple don't "need" each other. But without partnerships then Apple is creating a worse product and that means its the consumers that will suffer the most.
  23. shanson27 macrumors 6502a


    Nov 27, 2011
  24. Northgrove macrumors 65816

    Aug 3, 2010
    Hasten their move? Isn't it more about others not being ready for Apple, than Apple not being ready for them? It takes quite some resources to take on Apple.
  25. Krazy Bill macrumors 68030

    Krazy Bill

    Dec 21, 2011
    Tim Cook - Note to self: Don't bite the hand that feeds you.

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