Samsung Increases iPhone And iPad Processor Prices By 20%

The “I hate you, but I can’t live without you” relationship between Apple and Samsung is turning out to be very profitable for the latter, as it is a supplier of key components of Apple’s mobile devices. As the Korean daily Chosun Ilbo reports, Samsung has increased the price of manufacturing Apple’s iPhone and iPad processor by a 20%.

iPad processor
It is interesting to note, though, that this was the very first time Samsung had pushed for an increase in pricing, and since Apple’s supplier list isn’t full of alternatives for these cases, the Cupertino company accepted the South Korean company’s demands.

There were several reports about Apple terminating the contract with Samsung, but these turned out to be false, at least for now. Maybe Apple is looking for alternatives, as the latest executive management reshuffle has resulted in Bob Mansfield being head of the Technical team.

As Apple’s move to accept the demand shows, the Cupertino company isn’t yet ready for shifting away, despite making the first move by creating its first custom SoC, which it still needed to turn to Samsung to build.

We don’t know what the exact reason behind the price increase is: maybe this is how Samsung plans to pay the $1 billion?

[Via The Verge, Image credit: iFxit]

Technology enthusiast, rocker, biker and writer of iPhoneinCanada.ca. Follow me on Twitter or contact me via email: istvan@iphoneincanada.ca

  • Which may cause a further price increase in Apple products, which means us customers are picking up the tab for Apple (not making any conclusions!) #justsayin

  • Tvaddic

    People may be reading to much into this, I don’t think it has to do with the Billion dollar lawsuit. Samsung is spending about 4 billion dollars on their chip plants, and seeing how this is the first price increase since the iPhone was created, I believe it is justified.

  • Jonathan W.

    I don’t think most Apple customers will mind the extra price increase on Apple products IMO. I could imagine that people would be willing to spend extra money on a premium product.

  • Apple_Sauce

    LOL. Apple products are already overpriced. I think the sheep are finally figuring this out. More cost is not going to help, that is for sure. But Apple deserves a price increase from Samsung after the joke of a patent they sued Samsung with.