Samsung’€™s 20% chip price hike for Apple was scheduled long ago

 

It appears that Samsung’s 20% price hike on processors for Apple’s iOS devices may actually have been scheduled. According to a report, Samsung scheduled the price hike at the start of the year, long before a massive court battle between Samsung and Apple ended when Samsung were ordered to pay $1 billion to Apple in damages.

According to an analyst from Piper Jaffray, Apple will only take a 1 and 2 percent hit on the profit margins after the 20% price hike. The processors in Apples devices are actually fairly cheap, making up only between 6-9% of the total cost of the devices.

Apple has attempted to leave Samsung and set-up shop with a new chip supplier but they have not yet found another company to do so. It is thought that Apple is looking into making their own chips, which would be much cheaper for them in the long run.

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