Samsung Is Charging Apple 20% More on Every A6X Chip Manufactured

The price adjustment is merely a change imposed by the supply chain

By on November 12th, 2012 13:02 GMT

Samsung Electronics, the sole manufacturer of A-series application processors for Apple’s iPhones and iPads, has demanded the Cupertino company to pay 20% more for the cost of each chip, reflecting new supply prices.

According to Chosun Ilbo (the English language edition of the Korea Daily News), one of the major newspapers in South Korea, Samsung Electronics raised the price of mobile processors supplied to Apple by 20 percent, citing a person familiar with negotiations between the two companies.

The reason is not spite, as some may believe, but a simple supply chain adjustment that needed to be done.

The source reportedly said Apple initially declined Samsung’s demands, “but finding no replacement supplier, it accepted.”

The Korean newspaper also mentions that Samsung Electronics is obligated by contract to supply chips like the A6X to Apple until 2014.

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