Samsung raises chip prices just for Apple

Zack Whittaker at ZDNet.com:

Samsung has hiked the price of its mobile processors by 20 percent, but to only one of the Korean technology giant’s customers: Apple.

It’s quite surprising Samsung didn’t do this earlier. Their contract to supply Apple with hardware ends in 2014.

The price hike has already gone into effect, the report said. Apple bought in the region of 130 million Samsung-made mobile processors last year and more than 200 million chips this year to keep up with demand of the iPhone 5 and the new iPads, such as the 7-inch iPad mini.

This must sting like a bastard for Tim Cook, who’s spent years leveraging better and better deals with Apple hardware suppliers. The sooner Apple can make its own chips and gain more control over its supply chain the better.

In the meantime while losing Apple’s business will be painful for Samsung, the way its own phone business is going it’s going to need all the chips it can manufacture.

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Some of the stuff I do: journalism, blogging, cooking, product management, marketing communications and being a dad to two little girls. Two cats, also. I’m head of publishing and product development for a UK government website and I write for content marketing agency Collective Content. For years I wrote about Apple under the Seb Janacek byline.