South Korea’s Samsung is a core Apple supplier, producing both dynamic random access memory (DRAM) chips and NAND memory chips – for the iPhone, iPad and iPod. Samsung Electronics has reportedly raised the prices of the mobile processors supplied to Apple Inc by 20 percent!
South Korean news website Chosun llbo reported on Monday that Samsung increased the price of manufacturing Apple’s application processor. It is further reported that this is the first time that Samsung has sought to hike pricing on the Application Processor.
Few months ago, we reported that Apple had reduced memory chip orders from Samsung and they would use Toshiba, Elpida and Hynix that would provide NAND and DRAM chips. It was also further added that Elpida had already started selling as much as half of its memory output to Apple. Although Apple has sought to diversify away from Samsung in recent times, now it appears nobody else is able to match the production volume that Samsung can offer.
According to the news report, Apple buys all Application Processors used for production of Apple iPhone and iPad from Samsung Electronics with the volume estimated to be around 130 million units last year and more than 200 million units this year.
It is also further stated that Samsung Electronics has a long-term contract to supply Application Processors to Apple until 2014.