Apple is now paying more for the A6 and A6X processors in the iPhone and iPad thanks to a 20 percent price increase from Samsung. Apple designs the chips, but has been relying on Samsung for manufacturing.
Samsung hits Apple with 20 percent price increase for processors
“Samsung Electronics recently asked Apple for a significant price raise in application processor,” an anonymous source said, according to MarketWatch. “Apple first disapproved it, but finding no replacement supplier, it accepted the [increase.]”
The source didn't say if the increase was due to a change in Samsung's manufacturing costs, or if it was related in some way to the company's ongoing patent infringement legal fight with Apple.
Apple and Samsung have been locked in a patent infringement fight in courts around the world over allegations that they are using each other's mobile device patents without proper licensing. Apple recently won a big victory in the United States when a Federal Court Jury ruled that the iPhone and iPad maker wasn't infringing on Samsung's patents, but that Samsung was copying Apple's designs for its own smartphones and tablets.
Neither company is commenting on the reported chip price increase.