As Apple claimed Samsung copied iPhone technology, Samsung finally tempted to hit back. Lately, according to a foreign media’s report, Samsung increased the price of mobile processors (inside iPad and iPhone) it provided the Apple by 20%. A source indicated that Apple initially refused to pay it. However, it came back and agreed to pay the additional costs when no alternative provider could be found. It is reported that the two sides of supply contract wouldn’t terminate until 2014.
We have reported that Apple launched the newest product, the iPad mini, and its A5 dual core processors supplied by Samsung. Last year, Apple purchased an estimated 130 million of application processors from Samsung to produce its iPhone and iPad. It is estimated that Apple will purchase over 200 million application processors from Samsung this year. However, Samsung Electronics and Apple offices in South Korea haven’t yet a comment on this massage. In my opinion, Samsung actually hit Apple with its price hike when Apple’s stock price was dropping and its Innovation capability plagued by doubts. The legal battle is growing in intensity after last year’s global lawsuit.
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