REPORT: Samsung Raised Supplier Prices On Apple By 20%

Posted Nov 12, 2012

According to South Korean daily newspaper Chosun Ilbu, Samsung has increased the price of mobile processors for Apple by 20%.  Chosun received information about the negotiations from someone familiar with the companies.  Apple attempted to walk away from the deal, but had nowhere to go for a replacement manufacturer.

Apple is currently attempting to switch to Taiwan-based companies TSMC and Kinsus Interconnect Technology Corporation for their mobile processors.  Apple has already given those two companies massive contracts and those suppliers are actually helping Apple see a savings of around 10%.

Apple supposedly purchased around 200 million processors from Samsung this year alone and they have a contract that is supposed to go through 2014.  Earlier this year, a report was circulating that Samsung would be cutting their LCD supplier relationship with Apple, but Samsung reported that this was not the case and they were not aware of the deal ending.