Apple concedes to Samsungs demand

Samsung Electronics has reportedly raised the prices of the mobile processors it supplies to Apple for  iPhone and iPad. This was revealed by a report in Chosun Ilbo, a South Korean newspaper, which received the information from a source who knew about the negotiations between the iPhone maker and its arch rival. 


Apple, on its part, was forced to concede to Samsung's demand of 20% hike in the price of mobile processors, as it had no supplier that could replace the South Korean company. 

The report in the Korean daily quoted the same source saying that the new pricing has already come into effect. Apple sourced nearly 130 million mobile processors last year and over 200 million units in 2012. Samsung has a contractual obligation to supply processors to Apple till 2014. 

Samsung is responsible for manufacturing the processors, which Apple designs in-house. The iPhone maker has already started sourcing RAM and memory from manufacturers other than the South Korean company, but still relies on it for processors.