Samsung Raises Prices To Apple: I Wonder Why?

Posted by BernardSwiss on Nov 14, 2012 4:48 AM EDT
Forbes; By Tim Worstall
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Now this is an interesting little tale: Samsung has raised the price it charges Apple for the main applications processors in the iPhone and iPad. The interesting question is why have they done this? I have a suspicion that I know the answer why: no proof, just a suspicion.

Samsung Electronics , the world’s largest technology firm by revenue, raised the price of mobile processor supplied to Apple Inc. AAPL +0.67% by 20% recently, Chosun Ilbo reported Monday, citing a person familiar with negotiations between the two tech giants. “Samsung Electronics recently asked Apple for a significant price raise in (the mobile processor known as) application processor,” the person was quoted as saying in the report. “Apple first disapproved it, but finding no replacement supplier, it accepted the (increase.)”

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