Apple Learns That Suing A Key Supplier May Not Be So Smart; Samsung Jacks Up Prices On Apple
from the oh-look-at-that dept
Apple may be happy it won the first round of its patent fight against Samsung in the US (it’s not faring quite so well elsewhere around the globe), but these things have consequences. Besides being a competitor, Samsung is also a key Apple supplier… and it appears that Samsung is now using that to its advantage, jacking up the price on a mobile processor supplied to Apple by 20%. The report notes that Apple pushed back initially, but after realizing it couldn’t find a reasonable replacement, agreed to the new prices.
According to the report, Apple buys all APs used for production of iPhone and iPad from Samsung Electronics with the volume estimated to be 130 million units last year and more than 200 million units this year.
Samsung Electronics has a long-term contract to supply APs to Apple until 2014, the report added.
So even if Samsung has to pay Apple for patent infringement, perhaps it’ll be financed by the higher prices on processors Samsung sells Apple.
Maybe, next time, instead of suing each other, they could just focus on building products people like and letting the market sort the rest out.