A report this morning from CBS Marketwatch indicates that Samsung has raised the price of chips sold to Apple by 20%. This news comes from Korean newspaper Chosun Llbo, who cites a person familiar with negotiations.
“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.)”
There’s plenty of speculation in this report, but it seems that Samsung had previously advised Apple of the increase. Apple then proceeded to shop around for another supplier, only to come back and accept the deal from Samsung. Apple has started producing their own chips, but they still rely on third-party manufacturers for chips used in a number of iOS devices.
With HTC and Apple mending fences, you have to wonder if this price increase is justified or simply Samsung’s way of escalating the war that started as a result of continuing patent litigation between the two companies.