Anonymous Samsung executive denies the report of a 20% price hike on chips sold to Apple

Anonymous Samsung executive denies the report of a 20% price hike on chips sold to Apple
A couple of days ago, Korean publication Chosun Ilbo reported that Samsung had increased by 20%, the price it charges for Apple's AX line of processors. According to the report, Apple had no other choice but to pay since no other company can produce the necessary volume of chips that Samsung can at this point. On Wednesday, another Korean publication, The Hankyoreh, quoted an anonymous Samsung executive as saying that the price increase never happened.

The Samsung built A6 processor is used in the Apple iPhone 5

The Samsung built A6 processor is used in the Apple iPhone 5

According to the unnamed Samsung executive, prices for the processors are determined at the beginning of each year and cannot be easily changed in the middle of the agreement. Regardless of how much Samsung is charging, and which story is true, it does appear that Apple is looking to make a switch to TSMC sometime down the road. Apple and Qualcomm each allegedly offered the chip manufacturer $1 billion for the total output of  20nm chips that would be turned out by the company at a dedicated foundry. The offer was turned down as TSMC said that it wants to remain flexible for other OEMs.

Meanwhile, there is speculation that Samsung has canceled the construction of a new logic fabrication facility due to the possibility that the Korean manufacturer will lose orders from Apple for its next-generation chip. We can't say for sure that this is all based on the acrimony each side has for the other after all of the legal battles, but it wouldn't be a surprise to find out that it was a factor behind both Apple and Samsung's actions.

source: The Hankyoreh, TheStreet via AndroidAuthority

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7 Comments

1. gallitoking

Posts: 4721; Member since: May 17, 2011

Damm Samsung products are average at best but they do know how to make chips... ohh well.. is time to move on

7. PhenomFaz

Posts: 1236; Member since: Sep 26, 2012

either you're a noob or you haven't used the Galaxy Note II mate!

9. anywherehome

Posts: 971; Member since: Dec 13, 2011

nicely brain-washed by Apple, and what will you say to this youtube link? goo [dot] gl/ZuTmL and features you will never have: android [dot] com/whatsnew/ ? ;)

3. MeoCao unregistered

Apple can't use shifting to TSMC to "punish" SS b-c in chip manufacturing capacity falls behind demand, so Apple is in weaker position. Instead SS can punish Apple for the dirty game they are playing. And they should!

6. E.N.

Posts: 2610; Member since: Jan 25, 2009

Great job in trying to spin this to be great news for Samsung, but at the end of the day they're losing a major customer.

4. maxout

Posts: 32; Member since: Oct 20, 2012

even if they did... thats Samsung product.. they have right to increase or decrease the price of their product as the wish.. there is no law...for this.. Karma is ____.

5. gallitoking

Posts: 4721; Member since: May 17, 2011

not if there is a contract and a serious company like Samsung and Apple do have contracts.. so no Karma here

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