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Samsung screws Apple, bumps up the price of processors

Stephan Lourens
Born 20 years too early. Curses sometimes. Thinks too much. Believes plug-and-play is the best invention ever. If asked what he wants for his birthday he will... More

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In every iPhone, iPod and iPad you will find a Samsung processor. Yes even though the two tech giant are battling it out in court, the usual way of business still continues between them. Samsung Electronics has just raised the price of the processors that it supplies to Apple by 20%, according to MarketWatch. And what can Apple do but accept, as last year the Korean tech giant made 130-million processors for Apple devices, and this year it is set to go over the 200-million mark.

There are various reasons why Samsung would up the price of its processors. One very obvious one is to stick the knife in after their recent court battles that Apple sort of won. But the other reason is that Samsung churns out a lot of these processors, and whatever does not sell, gets used in its own smartphones. This makes sure that they can keep a larger share of what they produce. A win win situation then…

Rumours have been spreading that Apple have already begun looking for another manufacturer, as the contract between the two rivals ends in 2014. The Taiwan Semiconductor Manufacturing Company (TSMC) has been toted as a possible new supplier.

Given that Samsung is the largest smartphone maker in the world in terms of volume, a decision like this can only be beneficial for it. in the short term that is. Until Apple can build its own processors or find someone else that can match the quality produced by Samsung, it has to whatever gets fed to it.