Samsung Bites Back at Apple by Jacking Up Chip Prices

Paul Lilly

If you've ever seen the movie Step Brothers with Will Ferrell and John C. Reilly, then you have an idea of the relationship that exists between Samsung and Apple. It's a contentious one, born out of the fact that they've been brought together as a result of a marriage between mobile technologies and a mainstream audience increasingly infatuated with smartphones and tablets. Just as in Step Brothers, shenanigans ensue, the latest of which involves a significant price increase that Samsung is attempting to shove down Apple's throat.

Specifically, Samsung just jacked up the price of the mobile processors it supplies to Apple by 20 percent, The Wall Street Journal's Market Watch reports. Market Watch is basing its information on "a person familiar with negotiations between the two tech giants."

Apparently Apple first rejected the price hike, but unable to find a replacement supplier, was ultimately forced to accept Samsung's higher rate. Without another supplier, Apple is stuck between a rock and a hard place.

Consider this recent move payback after Apple sued Samsung over patent claims and won a billion dollar verdict in the U.S. earlier this year. The two sides are engaged in legal disputes in other parts of the world, including the U.K., where Apple's strategy backfired when a judge ordered the company to post an apology to Samsung on its website and in local newspapers.

Apple purchased around 130 million mobile processors from Samsung last year and is on pace to buy 200 million more this year.

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