Samsung slaps Apple with a 20pc price hike on chips and components

12 Nov 2012

The Apple iPad

Korean electronics giant Samsung is understood to be increasing the price of key components, such as the A5 and A6X SOCs used by Apple in iconic devices like the iPhone and iPad, by one-fifth.

Although Apple designs the A-series of system-on-a-chip (SOC) processors, they are manufactured by Samsung on Apple’s behalf.

The two companies have been locked in a bitter legal dispute regarding similarities between their respective smartphone and tablet products.

It is believed Apple has no choice but to accept the price hike because no other manufacturer can turn the SOCs around in the required volumes.

Recently, a judge in the UK forced Apple to publish upon its website and in newspapers that the Samsung Galaxy Tab 10.1 does not copy the iPad.

Also at the weekend, Apple and HTC announced a ceasefire in legal hostilities.

John Kennedy is a journalist who served as editor of Silicon Republic for 17 years