What do we have here? Conflicting reports from the Korean press? If only it would be the first time.
On Monday, we’ve told you that Samsung has reportedly increased the price of the processors it manufactures for Apple by a hefty 20 percent. The source of our post was a report from the Korean newspaper Chosun Ilbo, quoted by Market Watch. According to the report, Apple had no way to refuse the price hike, because at this point, no other manufacturer can deliver the production volumes that Apple requires.
Now, it’s time for the retort. The Hankyoreh, another Korean publication, reported today that Samsung has not in fact raised the price of its manufacturing services. The source is another anonymous executive of Samsung Electronics, who also said that the prices are set at the beginning of the year, and that there’s no easy way to change them mid-agreement.
So, two conflicting accounts, both indicating an anonymous Samsung executive as a source. Who to believe? It’s hard to say, but one thing is for sure. The relationship between Apple and Samsung is going downhill fast, and I am not talking just about their legal wars.
Samsung once made a good chunk of every iDevice, but that’s changing. Apple has been acting to reduce its dependency on its main rival, looking for alternatives suppliers of displays, memory modules and application processors.
Samsung might have realized that it’s going to lose Apple as a customer anyway. If that’s the case, why not squeeze some extra cash from the insanely rich Californians?
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Even if Samsung doesn’t make money from Apple, they will make money of their Galaxy S lines. http://tech.fortune.cnn.com/2012/11/14/apple-google-samsung-smartphone/?utm_medium=referral&utm_source=pulsenews
I can see the situation where a large order discount no longer applies due to the reduced orders across the board. Then it is not surprising if the price should rise to more normal price levels in that case. Perhaps the reporter could dig a little deeper into whether it was a general increase or one caused by reduced order size and losing a related discount.