Samsung bumps up the price of Apple’s processors by 20%, Apple can’t say no

by: ŠtefanNovember 12, 2012

Every iPhone or iPad or iPod touch that you see in the wild, they all have processors inside that were manufactured by Samsung. Samsung, knowing that Apple simply can’t call another company and ask them to make their chips, raised the prices of said chips by 20% according to MarketWatch. There’s not much Apple can do, and the report confirms that, saying Apple accepted the price bump. It also goes on to say that Samsung made roughly 130 million processors for Apple in 2011. This year that number is expected to surpass 200 million. And the contract that Apple and Samsung have, it doesn’t expire until 2014.

So let’s break this news item down. Why did Samsung bump up the prices of their chips? To screw Apple, obviously, but more importantly to make sure that Samsung can keep a greater share of what their factories spit out. The fewer processors Samsung makes for Apple, the more they can make for themselves. What’s Apple going to do? There have been rumors floating around the internet for months that Apple is going to transition to using another fab, TSMC, for their chips. We fully believe the rumor to be true, now it’s just a question of when. The MarketWatch piece says the contract between Apple and Samsung expires in 2014, so there’s a strong chance you’re going to see some Apple devices with TSMC chips inside hit the market within 24 months.

What impact, if any, does this have on the Android ecosystem? Like we said earlier, the fewer components Samsung supplies to Apple, the more they get to keep for themselves. Samsung is now the number one handset maker in terms of volume. They’d like to keep that title, and that means throwing one of their biggest customers under the bus.

Do we feel any sympathy towards Apple? Not in the slightest.

  • King7Dom

    All I see is that, Samsung is no better than Apple, all using dirtbag business tactics to shut down competitors.

    Google > Apple > Samsung
    Very glad Google went to LG for Nexus 4.

    • Tatsuya

      Me > Google | Samsung > Apple

      • AngelesMEC

        Samsung > Apple | Google > Apple
        Apple < Samsung | Apple < Google

    • DrGrimmz

      Oh really? Sammy do this cos apple start their dirty trick 1st… are u see sammy using any dirty business to other companies except apple

      • dan

        yes, in the monitor biz with Honhai, it is really a dirty company.

    • AngelesMEC

      Nexus 4 is an Android phone and that is what matters not the brand. At least it is not some iCrap.

    • And

      You clearly have forgotten that Apple sued Samsung originally, and then continued to do so in numerous countries (all based on ridiculous patents). Even when forced by the courts to apologise and admit Samsung didn’t copy, they were complete di*ks about it. I actually feel shameful I converted so many people to Apple gear.. Apple constantly screws both suppliers, developers, competitors and customers, and unfortunately, their religious following allows them to get away with it.

      • Thats not the point. The point he is trying to make is that these companies are unethical about production. Both use Foxcomm (if I’m right) and it’s not so much Apple’s fault (yes they’re greedy) but its the broken Patent system that allows Patents to get out of control. Patent rounded edged mobile devices? I mean that’s not fair. If it wasn’t Apple it’d be just another company. And the Chinese companies unfornately are the worst with their ethics(not specifically Samsung) but they cheat and use patents as blueprints.

        • VoiceofReason

          … so your point is, it’s not bad for Apple to try to get these absolutely idiotic patents because someone else would do it? Funny, all the people who were making round-edged rectangular smart phones before the iPhone existed didn’t do that… nor did Bill Gates seek to patent the shape of his tablet PC when it came out, 8 years before the iPad, which was exactly the same shape… nor does Microsoft seek to sue apple for all the licensing infringements apple makes every time they build a mac… hm. Nope, you’re wrong. Apple is run by a bunch of money-grubbing, unethical douchebags. Any backlash they suffer for their outright disgusting business practices are well-deserved.

        • Florin Jurcovici

          Samsung isn’t Chinese. You’re American, right? You got sort of a worldwide fame for being … ehem … very good at geography.

          • haha, no I’m not actually. I am English but I don’t identify with any national identity. My point still stands

          • Samsung has its own manufacturers for almost everything. So no Foxconn. Even Apple products battery made by Samsung. Maybe that’s why iPhone has non removable battery, because the battery has Samsung logo on it.

    • VoiceofReason

      Um, outside the business world this would be called due karma. Apple is a bad company hellbent on eliminating competition any way possible, ignoring the fact that their own Mac could be easily sued out of existence by Microsoft if they so chose. LG phones are garbage btw… HTC is where it’s at.

  • Still not enough, i would have raised the price 100-200%. And suck it Apple…

    • padlock1

      Apple deserves every %-age they get. Sadly tho for all their customers, they’ll be passing on every penny increase but that’s the price for sticking ignorantly to a fallen star.

      • gabrielsamfira

        They may have great products, but so do other companies. They had a choice to let competition be, and just make the same great products they have always made or become whiny snot nosed brats. If they would have chosen the former, people would have stuck with them regardless.

        Pulling stunts like suing for rounded corners and slide to unlock makes them look bad and deters some customers to other products. Seems like these days they focus more on trying win more customers over by eliminating the competition then they do on innovating and doing what’s best for their consumers.

      • im glad, apple users are a pretentious lot

        • And droid users are a dumb bunch, who’ll settle for substandard as standard. No wait, that’s generalising. Whoops. ;)

          • On a Clear Day

            Good line Lyndon! “….substandard as standard.”

            However, if you’ve been truly studying the technologies in question – – Android vs IOs – you ought to know (unless you are in major denial) that the quality of Android coupled with the multiplicity of hardware options it offers to people to enjoy with at a multiplicity of price points both high and low with the choice of features both simple and sophisticated, is anything but substandard. In fact, with the latest iteration of 4.2 Android is eclipsing iOs with so many features unique to Android that iOs doesn’t offer – like directions that actually direct – that iOs is falling behind.

            This is what happens when you take your eyes of the ball and instead of focusing on being creative you decide to embrace the dark side and seek to destroy those who aren’t willing to pay your greatness homage.

    • hoggleboggle

      I suspect the contract has an upper limit on price increases, my guess would be 20%

    • osiris

      Unfortunatly the stupid apple sheep will still flock out more money, even if nothing changes but the advertisement and the price.

      • lololololool

        Or you can have ignorant people like yourself jumping on the apple-hating bandwagon.

        • How can you not get on the apple hating-bandwagon? Being an apple fan is like trying to prove the bible right. You can try your hardest, but it just simple isn’t the truth.

          • adsfasdfgasd

            Dont matter, dudes a fag, probably typing it from his iphone.

          • Grow up

            Calm down homophobe.
            Dudes a fag?
            Are you 12 years old?

          • whatafag

            Quit being a fag.

          • wesvvv

            And hating on people because they exercise their market system right to choose the product they think best matches their needs is, what exactly? Rational? Seriously, why does it matter to you what someone else is buying to the point where you froth at the mouth about it?

          • Everyone should decide for themselves indeed. What they can afford and what they like as a preference. Like some people like a certain flavour of ice cream as opposed to another. There’s no need for anyone to bash or be hating anyone. These are just phones. People don’t I’m afraid act rationally for the vast majority of their lives; many of the best things in life are not only free but highly irrational.

          • Fera

            That is the worst analogy I have ever heard. These are corporations , not teams.

            You’re trying your hardest to tie apple fans and religion, which is hypocritical because there’s a lot of blind samsung love, even though they are not an innocrnt corporation.

          • There’s some truth in the bible. Only a total ignoramus would claim that there isn’t. Then again, asking the blind to describe a rainbow is about as helpful as asking the deaf to give you an opinion on music.

          • Really? What truth actually is there in the Bible?

          • st4sh

            beethoven was death

        • Or be a tiny pricked Steve job’s blowing weasel like you.

        • Mat_t

          reality is ignorance? wow. I guess facts must be too, then, huh.

        • drhowarddrfine

          I see this is a honeypot for 12-year olds. Ignore them.

      • wesvvv

        Amazing how thoroughly obnoxious some tech owners are, isn’t it? So obnoxious. (yeah, irony is dead…)

      • Untrue, lamebot. Stupidity is not the sole province of Apple. It seems to be universally human. Apple at least has the integrity to invest in original design, whereas Samemsung, can’t be bothered and just knock-off what everyone else has been doing for years. They clone the success of others and offer very little in the form of actual innovation. This, can’t be reasonably disputed.

        • The Samsung Galaxy S2 and S3 (and S1) have completely different design to Apple. The iPhone has been using virtually the exact same design for the past, what, 3 years? That’s hardly ‘original’.

          And the SGS3 came out before the iPhone 5, looked different and felt different, and is a far better phone.

  • “Why did Samsung bump up the prices of their chips? To screw Apple, obviously, …” aww, burn.

  • Reality Bites

    Nice, 20% per month should teach them a valuable lesson about greed ;)

    • Jonathan Burchell

      The irony of this comment is astounding. You’re an idiot.

      • Yes, because I’m tired of Apples greed, and I had a little joke with some friends in the office I’m an idiot. Nice ad hominem, sadact. <– Oh look, more irony /facepalm FYI, Sometimes irony can be fun, unless of course you're a twit ;) <– Oh no, now I'm doing it, whatever next….

  • Droidrocks

    All Apple does is care about money. Now let other companies also worry about money and forget business ethics and give Apple a taste of their own medicine!

    • frosty3504

      Ha? And you dont think google/android/samsung ect are not out there to make money? They just do it in different methods. Cheaper hardware and OS, but selling every bit of information they can find out about you…. I am not sure which one is worse, but i would rather pay a little bit more money and keep what little privacy I have left.

      • VoiceofReason

        Yeah… about that; if you don’t think apple is using their absolute control over their devices to keep track of your activities and using your information any way they can to try to make more money off you, you’re extremely naive. At least Google is up front with what they do. Tell yourself whatever you have to though; it’s your money you’re wasting on overhyped tech.

        • drhowarddrfine

          Uh. And Microsoft never asks for your name, address, etc. and forces you to register? What do they do with that?

      • KidsTheseDays

        You’re joking right? Apple tracks and records your every movement, thus the class action lawsuit in Canada right now. Google, while they do mine for data, they don’t do it like Apple does, and they respect the laws regarding data privacy, there were a lot of eyes watching Google get in to the phone business…

        Jesus christ, people believe anything they hear these days. I bet you were a Romney supporter too eh?

      • Pepe

        there is a different between cheaper hw and selling hw cheaper. Also between bash and arguments. Privacy and crapple in one sentence, gosh thats funny. Welcome to our Planet

    • Anonymous

      Deep down, almost all companies care about getting the money…

  • pingpong12

    It’s only right considering Apple’s lawsuits add to the overhead costs of Samsung haha

  • Sandor Trinder

    Samsung must get the money somehow for the fee… :)

  • sam

    apple must be having a back up plan.
    so unfair, apple debuted the technology and years later Samsung is using it against them.
    Apple still rocks

    • Me Ted

      LOL! What’s it like on the moon?

    • Wonderful business decisions there to put your company in such a position. Sheeesh!

  • Adam Koncz

    Well they are taking back the billion bucks Apple gained with suing them. These things happens when you sue your hardware suppliers.

    • Me Ted

      The best thing is that case still isn’t decided yet. There’s still the issue with that juror.

  • Apple walon, ise kehte hai apne pao pe kuladi maarna. :)

  • Pathetic… instead on competing Apple’s quality they try to make more money out of someone else’s great product.

    • David

      Because Apple have never tried to do that, I mean Steve Jobs and all of Apple were just so nice. And I cannot think of one time where they have tried to sue for petty reasons in the pursuit of money, and I also can’t think of any times where Jobs screwed his best friend Woz for a quick buck! Can you?

      • Gustaf

        Rounded corners, square devices with glass screens, slide to unlock. How are these not petty reasons to sue? Oh and before you say that slide to unlock is justified, that was patented by a small Swedish company before Apple used it, and they still got away with it.

        Oh and while we’re at it, how about when Apple started up business and signed a deal with the music-lable called somehting with “apple” that they would never go in to the music-industry. What did they do? they launched Itunes, and they got away with that one too.

        They haven’t made anything innovative since the Iphone, all they’ve been doing since then is upgrading the hardware and added features that has already been in other handsets for 10 years.

        Sure, There’s some things about Samsung and the Android systems that are shit to, like how they do with the updates for android for the phones that aren’t pure google.

        But thet shit that Google and the Android-companys pull is nothing compared to Apple.

    • Me Ted

      Their processors ARE the great product in this case.

      • John Burchell

        Erm nope. They’re entirely of ARM design with Apple modification. Samsung just fabricates them. As the article says, Apple can take the chip design to any company and have it fabricated with ease.

        • David

          Actually, the A6 and A6X are completely custom designed processors offering twice the performance of the stock ARM processors. That’s something no other company can claim because they just use the stock off-the-shelf ARM processors, and that includes Samsung. That is why Apple products are so much better. Just look at the Geekbench scores. The iPhone 5 (A6) and 4th Generation iPad (A6X) have the highest scores in their respective phone and tablet categories.

          • Austin Cooper

            They are not completely custom. Apple does not have licensing from ARM to build their own core architectures. Only Qualcomm has that. Not to mention that now Samsung has started using the new A15 core type so each core is much faster. The reason why I Phone and iPad score decent in benchmarks is because the operating system. The OS is very simple so it doesn’t take much resources. However, the iPhone and iPad are not the highest scores in their respective categories on Geek bench. iPhone scores 1500-1600 whereas the Galaxy S3 is 1700-1800. I’ve personally gotten over 1700.And as far as tablets go, the iPad 4 scored around 1700 but there have been preliminary benchmarks of the new Nexus 10 that fall in at 2400. So much for your reasoning. I would suggest basing comments on facts because someone is bound to call you out on it and make you look stupid.

          • He said respective categories – in case of iPhone 5 its dual core cpu category. So since S3 is quad core, he was right. Read better next time.

          • Given that most applications will not use all 4 cores of a processor, there’s no real difference. Just adding more cores doesn’t intrinsically make everything faster unless you can delegate application threads to specific cores and split multithreaded applications between cores properly. It’s still an issue in the desktop environment, not sure why people expect it to magically be better now.

          • Florin Jurcovici

            That’s exactly why Android is IMO technically better. There are no artifficial restricions to keep applications from producing workload. Instead, the OS tries hard to optimally use all available hardware resources.

            As for the issue in desktop envs: you were speaking from memory, from 10 years ago, right? Even Windows does a decent job at efficiently using multiple processors lately.

          • Yes, Windows may handle multi-core processing better, Windows applications, however, aren’t necessarily as well optimised. Especially when it comes to games. Windows is smart enough to realise that if one process is taking up a lot of cycles on a particular core it should shift processes to other cores (unless they’ve got a set affinity, of course). But it’s hardly optimal yet.

          • True, the synthetic are made to utilize the extra cores while most apps are not. Still at certain point apps will get smarter and cpus with extra cores are going to age better.

          • Florin Jurcovici

            Idunno … geekbench says out of the first ten high scores for Android Samsung processors take eight spots, and the first three of them are all scoring higher than the custom ARMs found in Apple any device – the geekbench benchmark tries hard to be cross platform.

        • Kiotu

          With ease? Think before u say mate..

        • Me Ted

          But not today. Now what? Lol

        • Marvin Nakajima

          Maybe an analogy would be appropriate here. Apple owns the ‘recipe’, Samsung has superior ‘cooking skill’ in making that recipe with quality and low cost. While it is true that Apple can have another company make their chips for them I would sincerely doubt they will reach the same chip yield (wafer quality) which leads to higher cost and lower output outside of getting Intel (which I think is has the best chip manufacturing tech) to make their chips. Something Intel is reluctant to do first with the exclusivity that Apple is asking for and second since the ARM architecture is a direct competitor to Intel’s own chip architecture. Note also that there may be patents for manufacturing processes that may have to be licensed from Samsung, among others to achieve similar results. Of course all of this may be moot since they can just cut a bit into their large profit margin or just pass the cost increase to their customers.

          • No, the reason ARM is so popular is that they’re powerful devices at ridiculously low power consumption and they stay cool, which is why they’re ideal for mobile devices.

          • Marvin Nakajima

            I must be missing something. If you are replying to my post, try reading it again. I just said that Apple would probably pay more (time/money) if they took their order somewhere else. Also that Intel would be reluctant to fabricate a rival architecture chip in their foundries.

          • Your comment wasn’t clear. It sounded like you were suggesting that Intel make mobile chips for them. It still sounds that way on a second read-through. I apologise for getting the wrong end of the stick.

            You are, however, quite right. Intel wouldn’t fab ARM devices. AMD possibly would, however, given their recent announcement that they’ve sought ARM licenses (I don’t have a source for that I’m afraid, I can’t remember where I read it). NVidia might be willing to sell their chips to Apple, but I doubt Apple would go with that.

    • freeall

      Apple… instead of competing with Samsung’s quality they try to make more money by suing someone else’s great product.

  • idgadget

    NIce pict

  • drcmda

    it doesn’t really feel like good news. samsung is androids biggest shame, i wish they would back down and shut up. this stupid war is only making it worse for all of us.
    and if they really want to save money, how about firing the amateurs that are responsible for touchwizz, or the executives that gave order to screw up android in the first place. skinning devices to keep them out of the update circle, letting them age faster in order to artificially spur sales for newer specs – thats is androids true enemy, not apples petty lawsuits.

    • Tessler

      Since Samsung is making in one hour more profit then you earn in all your lifetime together I thinj its maybe you who should accept advises from Samsung and not the other way around :-)

  • Guest

    The article says the contract doesn’t expire until 2014 – Samsung
    can’t just arbitrarily raise the price when it’s already set in stone.
    I am guessing the is really saying that Samsung is no
    longer offering volume discount for Apple, effectively raising the price
    of Ax processors by 20%.

    This is no news though. Didn’t Samsung also raise the prices of NAND/DRAM –
    the main reason for which Apple contracted inferior component makers
    like Hynix, LG, Elpidas for the iPhone 5?

  • This article made my day :D. Next move for Samsung is to buy TSMC.

    • Given the money in the bank accounts of the two companies, if Samsung and Apple were to each try to buy TSMC, which do you think would win?

      I honestly do not understand why Apple has not been spending the last few years investing their hordes of extra cash into building *their own factories* with which to build every single one of their own components.

      • frosty3504

        It’s bad enough that they are some how related to Foxcon for slave labour, imagine their public image if they employed the 7 year old sweatshop kids….

      • That’s because they’re not that confident in the future of their products. With the other industry competition forging ahead, Apple knows its days are numbered; like when the IBM personal computer took over the market. Soon, they’ll reach the tipping point where their market share is only in the 35% range and still dropping. That’s when they cease spending on innovation and support and the iPhoney users all over are dropped like hot plates holding their overpriced bricks. It’s a shame how lemmings always follow their own kind to their death. If only they were intelligent enough to make their own decisions.

      • I’m surprised people think they haven’t been building their own factories: I’m betting there’s a LOT that’ll come out in the next several months about they’ve again turned the industry on its head.

      • Fosters

        Because of the way these fabs work. They start off making processors, which require the latest and greatest technology and as they get outdated they switch to making other types of chips; from chipsets to miscellaneous ICs. Intel is best known for this; their fabs go from making processors, to chipsets, to memory chips (think eprom/ssd, not necessarily ram), ethernet chips to other circuits that could be made on smaller fabs but are not as cutting edge as the processor of the day (aka, you’re not gonna see a 20nm chip inside a wireless mouse).

        Because of this, only companies that manufacture a large range of products actually benefit from having their own factories. Companies like Samsung, Intel, etc. The rest of the companies out there have to contract these independent manufacturers like TSMC, which manufacture whatever chip you send to them; and when apple/htc/etc are done with them and are ready to move on to a smaller process, the company (say TSMC in this case) can then move on to making other stuff, without tossing out millions of dollars in manufacturing equipment, like Apple would have to do.

    • That would make my year lol

    • On a Clear Day

      I had the same thought. Wouldn’t that roast their chestnuts?!

  • Dude

    Processor sales, to Apple or whoever else, is good business for Samsung. Less sales is not good. Whether you like Apple as a company or not, if they take their processor business elsewhere, Samsung is going to have a bad time. BTW, the Apple processors are custom and the design is owned by them. Samsung will not ‘keep more for themselves’. This is ridiculous.

    • johns

      i think what he was saying is, samsung can make lets say 300 chips a day. if apple buys 299 chips from samsung, samsung can only make one of their OWN chips for themselves. But if apple buys less, lets say 100, samsung can now make 200 of their OWN chips.

    • William Shropshire

      Reading comprehension….go work on that

  • Klaxon

    Children…. you do know that contracts not only have start and end
    dates, they usually talk about pricing, right? You also know,
    presumably, what the component cost mix is in Apple products? You
    don’t? Hmm.. Then perhaps you know that many of Apple’s internal
    parts are proprietary, and if Samsung isn’t producing them for Apple,
    they can’t produce them for Samsung since they are, you know,

    The spittle on your droid lips is a little
    premature. Folks who buy Apple aren’t driven by low cost, they are
    driven to buy things that work. Well. Together. Now. All of these
    things are what android is not. Suck that.

    • Paradox

      Of course Apple chips are proprietary, but the chips Apple buys from Samsung next Month are probably not manufactured yet. So if Apple orders less, it opens Fab capacities for Samsungs own chips.

    • st0815

      First paragraph was right on target, then it descended into silly bashing. Sure there are lots of people who are already doing that – whether they are Apple or Android fanbois, but there is no need to add to that number. Let’s just skip this, it adds no value.

      Also as Paradox pointed out: Samsung can (and likely does) make other chips in those fabs. Apple has announced that they are switching to other suppliers which caused Samsung to delay construction of the Line-17 fab. I think the prices are likely only fixed for a certain number of devices per month. Now if Apple needs more parts (they probably do) and Samsung sees that they are moving away as a customer in any case – then there is no reason for Samsung to give them a particularly good deal.

      As for “screwing Apple” – they just want to make more money of them while they still can. That’s just business.

    • End in sight

      “Children”? Nice arrogance you A$$ H*LE. If you want people to listen to you, try respect. And by the way I don’t resort to name calling for people who show me respect, but rather I show respect in return. I obviously don’t respect you and I would love to meet you and disrespect you to your face, not just in comments.

      • Dennis

        Whoa, you sure do have some long toes. What is things, a f-ing brodown or something. Pathetic!

    • Anon

      The fanboy is strong in this one. His nose is so far up Apple’s ass he can’t even take 2 seconds to realize that Samsung knows full well how to make their own components, and making less of Apple’s means more resources to make their own.

      • And where did that knowledge come from, lameboy? The USA. Yeah, the USA. The Koreans bought their technology and started making cheap knock-offs of other peoples work until they could do something decent themselves, so don’t come with your garbage.

    • Christopher Bement

      Driven by things that are shiny and make noise, not by things that work well.

    • Rambles

      You are familiar with the idea that production lines can be retooled to a new fabrication far faster than a new fabrication line can be put together, right?

      I mean come on, that’s something even young children can figure out on their own.

      • Klaxon

        Fabs are running at lower than capacity all over the planet. If it were an issue for Apple, $100 billion would make a nice down payment on maybe 20? Yes, I am familiar with fabs. (ee/mba). My phone does not represent a major part of my net worth, also. This price hike, if real, was not unforeseen nor overlooked by either Apple or Sammy. It is a 20% bump on one part of several hundred. Those hoping it heralds some sort of apocalypse for Apple are delusional.

        • KidsTheseDays

          You seem to be the only delusional one around here mate… No one here thinks a 20% increase in chip costs is an apocalypse, honestly you’re a tool for implying that… Apple has been making some terrible business choices this last year, and I personally am glad to see them paying for those choices now. No this is not an end all for them, but It’s nice to see they can’t pull bullshit lawsuits out of their asses and not have repercussions… Samsung doesn’t need Apples business anymore, if they ever did ‘need’ them at all. They have superior devices, and with all the bad blood between them I don’t doubt we’ll hear more stories like this one. Personally I can’t wait for the next chapter in this story.

    • Have you considered that Samsung might actually want those fab units back so they can retool them? And if Apple isn’t going to renew with them they might as well get the most out of them while the contract lasts.

      Oh, and Android 4.x.x is far superior to iOS. It does ‘just work’ and it’s pretty intuitive to use.

      • Florin Jurcovici

        What Apple users claim is better in iOS is that it simply moves smoother. That is indeed the case, even with jellybean. However, the slightly higher smoothness of iOS is IMO not worth giving up lots of useful features which you have on Android devices: typically double RAM and persistent storage for the same price, faster processors, USB ports, internal card readers, real, working multithreading and an overall way cheaper market.

    • KidsTheseDays

      lol… See this is what makes Android / Samsung fans laugh… You Apple fans sincerely and genuinely believe you have a much higher quality product. I’m not a Samsung fan boy. I simply did my homework before I bought my last phone. I was looking into iPhones, because they do have a pretty sleek appearance, but when I started looking at hardware, and at functionality, the amount of different choices Android has… Well it was pretty clear that Apple really doesn’t have anything on Samsung/Android anymore. I honest to god prefer the look of my Samsung phone over an iPhone. I prefer the larger screen, It makes viewing websites much more enjoyable than a tiny iPhone screen… Many aspects of Android, such as how customizable the interface is are highly desirable and Apple simply doesn’t offer the same level of quality. I’ve never once had a hardware issue with my Samsung, never had to return it… Never had to ship it away… Meanwhile I’ve had friends go through multiple iPhones, the caveat being that Apple at least offers a great warranty. I find this funny though because if they DIDN’T offer stellar warranties, their products would be complete shit, as they’re so expensive and seem to break left right and center. So I payed less money for my Galaxy Note than I would have paid for an iPhone 4S ( At the time iPhone 5s weren’t out. ) and the Note actually has some technology that is better than iPhone 5s. So yeah… I bought something a year ago, at a much cheaper price than Apples current products, and I can honest to god say I would still prefer my year old unit over their brand new unit….

      • Wicked witch

        Stop buying useless shits ! read books !

        • Florin Jurcovici

          I do! On my tablet!

      • You make some fair points, but until you actually own an iPhone, you’re like a virgin trying to describe what sex is like. Yeah, you know the parts and the mechanics, but you know bugger all else about how it all fits together.

        • st4sh

          ha ha ha ha ha, im not an appple nor android person , i own both, ios is buggy n shity, if it wasnt so dear id give it to a homeless person, but untill u own an android, ur just a virgin talking bout something u have no idea about…… bloody virgins

          • st4sh

            although my htc is buggy n shit too, but aging tech does that

      • Farbod

        My iphone 4 hasn’t broke even once after 1. Falling in water 2. Getting run over by a bike 3. Getting thrown at a metal chair and several other minor drops in the past 3 years. I have never entered an apple store. Ever. To get it fixed

    • Kiotu

      The guy said “Folk who buy apple….”….apple is a company? And then he said “…what android is not…”….android is an operating system!…this makes no sense, comparing a company to an os, he should compare apple to -for example- samsung, or to google, and from what i know both company makes products that works…samsung makes SSD, TV, fridge, phones, and of course chips, and don’t tell me you never use google search? Google maps?
      As for android you should then compare it with ios, and when it comes to that, tell us what in android that don’t work? Don’t make reason with assumption dude…for me they both works, ios is simple and easy to use (kids, women, and elders can easily use them)….but users can only use it as how it designed to be, not much to tinker with…..while android is far more customizable as it is on open source based….people can do whatever they want with some skills to modify them, and that is what android users liked it for, they can just be a casual user, or maybe a superuser by developing their own firmware….

      And for myself, why me using android device instead of ios device? Well ios device is a bit boring for me, let my father use the new ipad because he’s not a tech guy so he won’t keep asking me how’s this and that, while i enjoy tinkering the looks of my note 10.1 and use it for my design presentation…

      As for samsung vs apple as per this topic, it’s pure business…eat or be eaten…yesterday i read news about apple stock starting to fall, and now this…hell it’s just how it works

    • Fosters

      Don’t for one second believe that Samsung’s semiconductor business is only capable to building proprietary chips for apple. If they stop producing those chips they can definitely produce other chips on the same manufacturing line. It’s not like they’re slowing down production for apple to produce the SAME identical chip in samsung products; not even close. But the same machinery can make just about any kind of shape silicon you throw at it…

    • “Folks who buy Apple… are driven to buy things that work. Well. Together. Now.”

      Which is why iPhones all have NFC and use standard Micro-USB connections….wait a minute.

      • That Guy

        Apple products work well with other Apple products.

        The flipside of that-
        Uploading an mp3 from your Windows PC to your iPhone or iPad without using iTunes!

    • cord

      Apple maps (ilost) just didn’t work. Well. Suck that.

  • Welly

    ITT: Lots of butt-hurt android users.

    • Me Ted

      Your mom uses Android?

    • VoiceofReason

      Funny, what I see is a lot of butthurt apple fanbois desperately clinging to poor reading comprehension and hype. English must not be your first language.

  • Theodore Ts’o

    Has it occurred to folks that perhaps they Samsung is doing this not because they want to “screw Apple”, but because their Android-based devices have been doing so well in the market place that they simply need more of their Fab output? One of the things about capitalism is that pricing is one of the ways that drive allocation decisions. If Samsung’s Semiconductor division is asked to maximize their profit, and the Samsung Handset division needs more processors because IDC has reported that they have a 30% market share world wide, while Apple has a 17% market share world wide (although Apple is leading Samsung in the US Market), that might very well explain things. Samsung’s Handset division might simply be willing to pay more for processors because they need them — because they are doing so well world-wide.

    • I had a feeling that only one or two people commenting here would understand that higher demand requires more fab facilities and therefore higher prices to fund those facilities while maintaining a healthy margin.

      • Adam Smith

        Huh? When demand outstrips supply, prices go up. Always. It’s as simple as that. “Healthy margins” and “funding new fabs” have nothing to do with the reason for price increases. Bizarre logic. You seem to be putting the cart before the horse…

      • You are a bit wrong. From business point of view, the more you produce the cheaper it becomes (that is the main principle and advantage of globalisation) so we cannot say that they increased prices because of higher demand. The prices has been increased only to force apple to find other supplier which I am pretty sure will be worse – it will bring Samsung advantages in better performance (the rates in assessing magazine or websites will improve) which will improve their profits and world market share. Additionally, by increasing “20%!!!!!” they sent message through the world that they actually produce one of the most important parts also in Apple. It shows they are very important in the whole process of making Apple successful. Generally, they became much more powerful by overtaking the market and now they are able to fight back to apple (apple started the patent fight). Honestly, I think apple started a stupid war which probably will bring them and us (as customers) higher prices, it will lead to decreasing of market share by apple and it can be similar case to the blackberry – they came so fast at the mobile phone market as fast as they became unpopular.

        • erm.. lol? From a “business” point of view, as you call it, one might wish to increase revenue, so decrease marginal profit per unit, for an overall higher total volume. I guess this is what you wished to say. Now, you follow up with, this is what globalisation is. Random stuff, but ok. You wish to say.. by trying to increase demand to supply one gets a per unit cost drop. Sure, that’s fine. The other Adam, said correctly, that when *demand* > *supply*, prices will go up.

          And about Samsung increasing the cost.. is assumed it is because of those Apple morons fake US cases. Sure, good to hear.. I hope Samsung covers in the theft fines AND on the same time, make apple a crappier product losing market share. Sweet.

        • Chris Worthington

          No, you are totally wrong. Demand by itself is nothing without supply. When demand goes up and supply remains the same, prices go up. The only way prices go down if demand is up is that the supply matches or exceeds demand. Econ 101.

        • In one stroke Samsung got back all that they had to pay apple from the lawsuit and more. Samsung is like the Insurance company. They never lose money. Customer (apple) always pays the bill

    • Ya boiii

      Hold up… common sense in an Android blog?

      I can’t believe my eyes!

      • Håkon Underbakke


    • Bob

      Even if they didn’t do it to “screw Apple”, Apple “is screwed” a bit now. Of course it’s in no way killing Apple but it hurts a bit. Basically just another just another brick in the wall between both companies, over time they hurt each other giving options to others growth or one of them both wins on a grand scale.

      I tend to believe they hurt each other benefitting the other players, all the publicity from this neverending legal crap seems too expensive for an ‘any publicity is good publicity’ approach.

      Best point in time for all the other contenders to catch up of course, i just hate to see all the cash they could use on R&D sent over to lawyers.. -.-

      • Against this is a false story. Even f it were true App,e is rapidly moving away from Samsung including chip fabrication. Samsung is just a manufacturer as Apple has their own chip design engineers. In the end Samsung is going lose billions in revenue so I hope they enjoyed copying App,e because it won’t have been worth it.

    • That maybe so but I like the that they’re getting back at Apple. :)

    • On a Clear Day

      Frankly, it surprises me that Samsung hasn’t raised prices 30 or even 40 percent, and not just on the processors but the other components I understand they make that go into the iPhone and sundry Apple products including the touch screens.

      Unless Apple has a price guarantee built into their contract it’s a sellers market and given it is highly unlikely they will want to continue any type of relationship after all the lawsuit dust settles they might as well press their advantage.

      Certainly, we all know, that if Apple were in the position Samsung is they would not hesitate for a moment to “screw” Samsung in their usual “thermo-nuclear”, scorched earth business style.

      I’m sure back in the beginning when everyone was making nice and Samsung was not a threat to Apple’s market that even the great, the all powerful wizard of Cupertino didn’t envision the day would come where Apple would find itself in this position.

      For Samsung to be making anything for Apple is akin to sleeping with and aiding and abegtting the enemy. Apple is the one who declared war and used every imaginable as well as unbelievable claim that legal minds unfettered with monetary limitations on the part of a client could devise to destroy those who get in its way; time to give them a taste of their own medicine and do everything possible that Samsung can to “nuke em”; one good turn deserves another.

      Couldn’t happen to a nice bunch of guys.

    • Rick

      No, you all are wrong! (I’m following the trend of “corrective commentary format” here, otherwise I’d be wrong myself)

  • butte dongue


  • Matt

    why are you guys fighting between each other. competition is good. and trust me … none of you guys are getting a penny saved from any of these lawsuits. if you HAD to think of choosing between the two… imagine winning a prize for free. which phone would you take. a Samsung S3 or an IP5? Both companies want your money. The least you can do is let them fight with each other haha.

  • emil3m

    This “article” is just a wet dream. Editorial authority on here makes one think this is a fetishist site rather than a tech one. Apple and Droid fanboys really need to get out more and get some fresh air. Thank god for sites like Tech Crunch.

  • bawb

    lmao this is hilariously poetic.

  • Madeyouangry

    Jesus Christ. Don’t “journalists” check their spelling and grammar anymore? Sorry to nit-pick, but when I find basic mistakes in an article, credibility goes out the window.

  • Steviepee

    Fake. The grammar is all wrong, apple haven’t accepted sh*t and Samsung would be sued on the unlawful tradesman act.

  • Appleton

    apple already has OVERPRICED products in the market…. so they are already getting more than 40% for crappy hardware they supply in perhaps a good looking box!

  • masterdebater

    They raised the price because Apple orders diminished a bit, and that is Apple’s decision to not solely rely on Samsung. It’s like bulk ordering.

    >> Like we said earlier, the fewer components Samsung supplies to Apple, the more they get to keep for themselves.

    Chips Samsung manufacture for Apple won’t and can’t be used by Samsung for itself. You don’t see an Exynos chip on an iPhone.

    Throwing under the bus? Someone got their daily dose of telenovela.

  • Michael

    It was not about Samsung keepin the chips for themselves. It was more about Samsumg making more money, lowering Apples profit margins and possibly effecting the pride they offer their products at.

  • JustNo

    Apple sucks though.

  • Apple are a bunch of smug assholes, trying to get a job at the Apple retail store is harder then getting into the CIA.

    • an apple a day..

      hahaha butt hurt much? looks like you didnt meet the standards for selling apple products.. not for everyone.
      try selling android phones or pc’s for that matter.

  • ZAndooo

    I am SO glad I jumped the iphone ship! The iphone is OLD technology. My Samsung Galaxy S3 is 100% customizable right out of the box! No jailbreak required lol

  • They decided to bump up the prices because they think AAPL won’t be in 2014 as important as today. Otherwise the long term view would have prevailed

  • Nonsense. Apple has long term contracts with all suppliers. The idea that Samsung can just raise prices arbitrarily is profoundly silly.

    • Marvin Nakajima

      Agreed.. Way too many factors that could be behind the reason for the increase. Most likely a combination of multiple factors than just one or two. Though I wouldn’t put it past any emotional reasons being in the mix.

  • matth84

    you have absolutely no idea how contract law works. There is no way Samsung semiconductors can up their prices without breaking the law. Also they are not the same devision as Samsung handsets and work independently to each other. If you have to be blatantly bias towards a company, please at least research the subject you are writing about. Your lack of business knowledge really shows on this fluff piece of an article.

    • VoiceofReason

      Unless you’ve read the contract yourself and know for sure there’s no allowances for price changes- which would make total sense, considering it’s a long-term contract dealing with tech products whose prices fluctuate frequently- then you’re just making yourself look like a hilariously ignorant and condescending douche. So I’m sure you’ve read it, right? Right?

      • matth84

        I was aware of that there would be provisions for renegotiations and cost changes within any longterm contract. But an increase ‘to screw Apple’ would never be a permissible reason. I should have made my comment clearer my apologies. From what I understand apple wanted to move suppliers due to pricing, but no one can fulfil the order quantities. So they had to accept the price hike.

    • NorthernHick01

      VoiceofReason is right. Long-term contracts frequently allow for variations in terms over time. It’s quite likely that Samsung has the right to change its price, and that Apple is entitled to say “No” – which would presumably trigger a premature end of the contract, after a short notice period – and find another supplier…however, for the production volume that Apple needs, it’s unlikely that they’d be able to phase it all over to a third party within whatever timeframe they might have.

      • matth84

        I was making a more broad comment on the poor wording and the lack of understanding of business practices on this blog. Stefan seems to think that Samsung can just hike up the price for no reason but to piss Apple off. I agree that there is an actual legitimate reason for the increase and it was done within the confines of the contract. An error on my behalf I should have made my comment a bit clearer.

        • NorthernHick01

          “…seems to think that Samsung can just hike up the price for no reason but to piss Apple off…”

          Again, it’s a function of contractual language, but language speaking to the *purpose* of an amendment would be pretty weak. Some contracts will cap the increase, or create a formula for the increase based on objective factors, or set a specific schedule for increases. Some contracts won’t, and will permit one party to insist on a new price as high as it thinks the other party will agree to. Or higher, if it wants out – it is not unheard of for long-term commercial contracts to have early termination provisions (conditional or otherwise).

          In other words, the contractual language may well (and presumably does) permit the increase demanded by Samsung, and for whatever reason the contract permits Samsung to do so, I don’t think the author is wrong to think that spite could be the reason they’re exercising that right.

  • D Barth

    Want to sue us? Ok,now you will pay most of it yourself. :)
    Go Samsung!

  • Too high and their contract would have been litigated, Samsung was smart here to do a reasonable increase.

  • Ya boiii

    “Do we feel any sympathy towards Apple? Not in the slightest.”

    Wow, this website seems to be full of twats.

    Keep grinding, virgins.

  • Technoid

    For years Samsung said that it maintained “firewalls” between its divisions. That’s why it insisted it could be both a supplier and competitor.

    Ignoring Apple for a second (or more if you like), Unless this is driven solely by cost of the fabrication process getting more expensive or constrained, then this is also very bad news for Android competitors who source parts from Samsung.

    This seems to give credence to the charge that those firewalls aren’t really real.

  • ChristSandwich

    Get Micron Technology (in the United States) to make your stuff. I think they do that sort of silicon/chip work.

  • hyperlord

    Maybe Apple just reduced the volume of chips ordered from Samsung and therefore is not eligable for bigger discounts anymore. That would be just normal mechanics and nothing about “screwing Apple”.
    In fact, the only company I know that let emotions affect its business decisions, is Apple (thermonuclear war anyone ?).

  • Guy

    Yay!!!!! Support the Korean company screwing the American one.

  • lorret

    That’s going to be an ugly war!

  • Maybe Samsung knows that after the contract expires Apple is going to ditch them, so they are making the most out of it now.

  • Chris


  • eeffuimanaardark

    Expenses increase, prices must follow. Expenses like raw materials, personnel,… fees… up the cost of everything.

  • Aypierre ma amener ici (coucou)

  • SantaClown

    Maybe its the other way around? Apple tried and tries to screw Samsung by switching to TMSC and now Samsung is forced to increase price to limited the damage done by losing one of its biggest customers. Those factories are expensive and losing your biggest customer so fast, 2 years, can mean they become unprofitable or are already in the total calculation. Thinking Samsung just can replace Apple’s demand with own demand is short minded. It would only work if Samsung is able to also take over Apple’s market share next 2 years. Thinking this would be covered by grow is wrong either. Grow is calculted into the factories capacity already and so are Apple’s demand. Losing them will foremost hit Saumsung.

  • Who cares

    iPhone guy here. I like my iPhone, so what? It’s runs way better than my last two androids. But why look at it as apple vs. the world. It’s just another phone. There are things I don’t like about iPhone, the glass panels look good but are a terrible choice in material (slides off things easy), my lock button is broke so I can’t restart it. What I do like about it is that just about everyone I know has a iPhone, so communicating couldn’t be better. Dual core zips along well, and graphics are very impressive. Before you hate the iPhone buy one and get a real opinion (not just try it), because I used to be a apple hating android fan but not anymore. It’s really silly. It’s a phone, all in all. It does what I want, so I’m happy. Btw I’m on a 4s, iv owned the nexus one and moto cliq.

    • I’ve tested using iPhones, I have a decent amount of experience with them.

      And that experience is painful.

      However, I will admit that Android does suffer from different issues, although largely in that it’s only really been since ICS that manufacturers have bothered to conform to density buckets, and more developers now conform to dp UI standards.

  • Googler

    Absolutely logical that Samsung decided to rise prices for their chips. I consider Apple as most overstated and moste overprised company in the world. WHat Samsung did is logical final of Apple’s attempts to push competitors out of the market.

  • Zach Marcolesco

    Things I noticed (as a moderate Apple “lover”):

    Is this increase only for Apple?

    Of course a Pro-Android/Google post would be in the “top picks” on G+.

    What’s stopping Apple from finding a different supplier?

    Apple is an American business (and don’t tell me that they mfg. their phones in China, everyone does)

    A good way to get the $1B back.

    I really hate the pure “snottyness” of Android fanboys. At least they can be nice about it. But I guess I can’t complain since this is an Android site.

    Doubt this was only to “screw Apple, obviously.”

    Apple will absorb this.only a few cents more per phone at the most. You forget about the other pieces of the phone.

  • ikihi

    “they did it to screw apple” this article sounds like an apple fan boy wrote it

  • jonnyswitchblade

    Oh shit!!! That’s going to raise the overall cost of those iphones by 1.61%. Suck on that fan boys!!!

  • Yeah, FUCK Apple. Samsung will pay Apple’s obscene court judgement (if ever) by selling the chips at a higher price! Genius! Go Samsung!!! Hey Steve Jobs, how’s life in your iCoffin?

  • Leo Smith

    It seems to me that there is little to no nationalism being expressed here, perhaps that is a sign of the perception of Apple these days, Evil. The most evil of all evil corporations.

  • Now what were you suing us for again? 5 billion? Make that 30% more for your chips. What else do we make for you… let’s see here..

  • This is a false story.
    Samsung needs Apple more than App,e needs Samsung and it would send a really bad signal to their other customers to raise prices this way. Apple isn’t the only company that has sued Samsung and they have been in trouble with the Korean government as well for illegal activities.

  • qingyu111

    When you think of comfortable running shoes, the first company that comes to mind is nike max. This is because they have a reputation for creating high-quality and great performing shoes. Do you ever fantasize having that cute, comfortable and ultra-light premium shoe for your running?
    Great stars on the track must have the right gear for the occasion and the nike air max is one of them. The shoe needs to be comfortable, fits good, offer high performance and has great traction. When it comes to the nike air max danmark, it is able to do this extremely well.

  • Tony NoName

    Samsung had their very first ARM processors coming off line in Austin Texas in 2005 and ended up in three smartphones. SGH-Z610 was out in Europe and Korea in February 2006 and passed FCC in August 2006. That was 6 months before iPhone launched and Apple was hunting parts and smartphone expertise then. There were more Samsung parts in original iPhone than there ever has been since.

    You could say Original iPhone 4 was SGH-Z610. It had metal band bezel, single round physical home button, 3G, two cameras w/ one for video chat, remote control, 3.5″ gesture based touchscreen, virtual keyboard, rounded corners. Speaker above the screen and that round button below it. It was very expensive and that’s why we don’t hear much about it today. But…. Samsung anxious to get new customers for it’s new Processor Fab at Austin jumped on the chance to sign Apple.

    When Steve Jobs went totally off his rocker and declared Thermonuclear War on Samsung, they were stunned. Here’s a company that’s worked hard to maintain the separateness of divisions and respects all their customers and even competitors too, and Steve’s Cancer was obviously affecting his thinking. You never sue your parts suppliers. Especially when they are part of why you became a success in the first place. EXTRA ESPECIALLY….. because Samsung has one of the biggest and most successful FTZ (Federal Trade Zones) in America and one of their selling points was that all parts they made could be shipped out and returned duty/tax free for sale as finished products. This is perhaps the BIGGEST of all the Benefits Samsung offers to loyal parts customers. One that other competitors are clamoring to get from Samsung.

    Nvidia, Broadcom and Qualcomm are just three of the competitors who’ve signed with Samsung for these reasons along with the simple fact, that Samsung is the only Fabricator who is successfully using IBM’s superior Gate First HKMG process technology. Intel is famous for bragging up it’s Gate Last technology, yet TSMC has had problems with it no one wants to admit for Yield an engineering problems kept hush. Yet…. why did these competitors pick Samsung? Simple… because they offer best yield rates, prices, and quality TSMC couldn’t deliver, along with that awesome residual of tax breaks and duty free status that gave Apple so much of their Obscene Profits! ……..take that away by dealing with TSMC? ….and Apple is not all that happy now about Steve wanting to sue them to death!

    Samsung has now taken Top Investor in America (CiCi Awards) two years in a row over even GMC (Goverment Motors). Next year they are again investing another $4 Billion Dollars in America to increase SoC processor production in Austin Texas. While Apple has never even been on the CiCi list. Let alone higher than #44 on America’s biggest investor list. So Samsung is actually more America than Apple could ever pretend to be! ……does Apple deserve to take it up their leader’s arses for being so Arrogant and Greedy? You better believe it! …….and that’s why Samsung even next year will more than double Apple’s smartphone sales….. because they deserve it!

  • Even a Top Reputed Company (APPLE) should fall under the hands of Samsung (electronics Giant)

  • JoeMama


  • Ian Davis

    Fairly ironic that all the “fees” Samsung is supposed to be paying Apple in fines for various patent disputes, is probably going to be charged right back to Apple, making their product even more expensive.. Seems pontentially a bit odd to me :)

  • tacopuck

    screwing apple? no, more like retribution after the fact, not only does samsung need more of thier own products to use in their devices, but why not attempt to recoup some of the monetary losses after apple’s judges decided they are idiots.

  • Kenkeyfish

    apple i guess you where not the first to manufacture a mobile phone…guess apple has cloned someones innovation…….Samsung please increase the price again…drain them as they go to court…i don’t know whether the apple company is full of lawyers. may be that is y they are improving

  • well! it sounds bad that Iphone got chips by samsung.This would not srew apple but we,more the samsung will bump up the price per chip more it would be expensive. still quite afew people love iphone though samsung is giving marvelous output and even its quite difficult to compare both devices as they manufacturers hasn’t left any stone untrun to make their device more and more fab! previously Iphone 5 indeed made folks heavyhearted because maps comanded errors and iphone brings new application with new version there wasn’t any new app there.Samsung is doing great but Iphone needs something new to refute their device.

  • This is the problem with America today. We cheer the foreign companies to screw over our domestic companies. Yay, please take our jobs.

  • Chris Norris

    well they got to pay for that Apple vs Samsung dispute somehow!

  • FrillArtist


  • disqus_1Rb4LtnWaY
  • pandre

    Apple has enough money to buy our country. They shouldn’t care.