Reports and sources are coming in saying that Samsung Electronics has decided to increase the price of application processors for Apple’s iPad and iPhone devices by a whopping 20%. I guess that’s one way to pay for Samsung’s legal fees in court cases with Apple. The Wall Street Journal is reporting that Apple had originally rejected the price change, but after the Cupertino-based company was unable to find any other manufacturer that was able to fill their order (mass production), they went ahead and accepted the new pricing. To put that in perspective for everyone — Samsung Electronics’ shipment of processor units is expected to crank up to 200 million this year from the 130 million last year. Apple really has themselves in a corner here, and while I’m sure they were expecting a hike in prices, I don’t think they were really ready for said hike.
While Samsung Electronics is a large enough company that their chips business operates independently on the handset side, it’s hard not to see that this price hike is a result of the constant lawsuits regarding patents all over the world. Surely all of these lawsuits have been very annoying for Samsung, especially considering that lawyer fees can skyrocket very easily. That said, I wouldn’t put it past Samsung to increase their processor fees so Apple is essentially paying for their legal fees. That’s just a wild guess though. In other news, Apple has been trying to avoid posting a public apology to Samsung in the United Kingdom for false claims saying that Samsung has copied their designs. The UK court isn’t very happy with Apple in their recent ruling against the Cupertino-based company, and as a result of that, Apple is now required to pay Apple’s legal fees on a indemnity basis. Regardless, I think we all know that Apple has been the school bully in the situation against Samsung, so I personally think that it is only right that Samsung would get back at them one way or another.
Nevertheless, do you think Samsung hiking up their processor prices for Apple is fair in this situation? Do you think that this is a direct result of Apple being so antagonistic in courts around the world, or was the increase in price not related to Apple at all? Do you think that Apple should have been prepared for a move like this from Samsung? The company knows they have no one to fall back on due to how many processor Samsung is able to produce in a year. There really isn’t anyone else that can meet the demand of processors that Apple needs in their various mobile devices.
I think that the price hike is really going to encourage Apple to look elsewhere, and maybe even just become independent in the realm of processors altogether. While Apple can afford to pay the extra 20%, this could eventually be harmful for their company in the long run.
Let us know your thoughts in the comments below!
source: Android Central