Samsung places 20 percent price hike on chips purchased by Apple

Jerimiah Yap – Fourth Estate Cooperative Writer

Cupertino, CA, United States (4E) – Apple and Samsung maybe chief rivals in the smartphone and tablet market but underneath the legal battles and court drama, the two companies work closely together.

Samsung provides Apple with key components for its iPhone and iPad, which include processors. But since the two companies have been battling fiercely against each other, the Korea-based electronics company raised its mobile processors by 20 percent for only one client — Apple.

According to The Wall Street Journal’s MarketWatch, Apple had no choice but the accept Samsung’s price hike because apparently the processors provided by Samsung is very specific. It’s explicitly made for Apple.

“Samsung Electronics recently asked Apple for a significant price raise in (the mobile processor known as) application processor. Apple first disapproved it, but finding no replacement supplier, it accepted the (increase.)” MarketWatch reported.

The price increase is already in effect and with the demand for the iPad mini and iPhone 5, Apple has ordered more than 200 million chips so far in 2012. Last year, the Cupertino-based company ordered just 130 million mobile processor chips from Samsung.

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