Samsung to charge Apple more for iPhone and iPad processor

Company rumoured to have hiked price by 20 per cent

While Apple and Samsung may be at loggerheads all the time they actually do business at the same time with Samsung providing the processors for the iPhone and iPad

Samsung has raised the price of its processors to Apple by 20 per cent according to a source within the negotiations, the Application Processors are an integral part of both the iPhone 5 and the iPad Mini.

The A6 processor most recently found in the iPad 4 is in fact a Samsung chip which combines a CPU and GPU together offering a more complete solution over adding lots of the processing components together.

Apple has a deal with Samsung until 2014 to exclusively buy the chips. When the company first announced the price hike Apple is believed to have disagreed but then for lack of any alternative had to agree with the terms.

What does this mean for consumers? At the moment probably nothing, it's unlikely that Apple will raise the price of their future products, instead they will accept a smaller margin in their profits, how much that will be however remains to be seen.

Source: MarketWatch

Tags