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

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

  1. macrumors bot

    MacRumors

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    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. macrumors 6502a

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    #2
    Hey Tim, how's Apple's thermonuclear war going?
     
  3. Guest

    Sky Blue

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  4. macrumors regular

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  5. macrumors 604

    wordoflife

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    #5
    At some point Apple will just find a new supplier and it'll hurt Samsung more in the end.

    Good job.
     
  6. macrumors 68020

    Aluminum213

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    #6
    this, Samsung just got back its billion dollar loss
     
  7. macrumors 68030

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    #7
    Apple patently already have.

    So given that Samsung may as well milk them for every penny in the meantime.
     
  8. macrumors 6502a

    MasterHowl

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    #8
    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. macrumors 6502a

    MrT8064

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    #9
    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. macrumors 68020

    Aluminum213

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    #10
    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. macrumors 68040

    the8thark

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    Apr 18, 2011
    #11
    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. macrumors 6502a

    paulbennett95

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    #12
    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. macrumors 68000

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    #13
    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. macrumors 6502

    Sora

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    #14
    The customer won't notice this increase.
    Pricing structure is already engrained into Apple's customer base.
     
  15. macrumors 65832

    JaySoul

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    #15
    Samsung and Apple should buy a kitten together.
     
  16. macrumors 68020

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    #16
    Once again, Apples selfish and petty wars with former partners results in hurting their own customers.
     
  17. macrumors 6502a

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    #17
    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. macrumors 6502a

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    #18
    What makes you think, that the others can do it cheaper?
     
  19. macrumors 65816

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    #19
    Samsung has decided to squeeze the apple to get as much as juice as possible until it gets dumped
     
  20. Moderator emeritus

    Hellhammer

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    #20
    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

    macrumors 6502a

    Muscle Master

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  22. macrumors 68020

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    #22
    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. macrumors 6502a

    shanson27

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  24. macrumors 6502a

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    #24
    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. macrumors 68030

    Krazy Bill

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    #25
    Tim Cook - Note to self: Don't bite the hand that feeds you.
     

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