This is starting to get out of control. Samsung and Apple have been trading blows at one another for over a year now, and every time we think the childish squabbles are over, we see news of another ridiculous lawsuit or attack ad. I think I speak for everyone when I say that Samsung and Apple should just part ways, instead of rekindling this toxic, ex-lover-like relationship.
It doesn’t look like they’re going to take my advice though. Brace yourselves people, Samsung has fired another strike at Apple, this time going after the tech giant’s wallet directly, instead of taking them to court. Samsung has reportedly raised the price it charges to manufacture chips and processors at its Austin, Texas, plant. The kicker here is that Samsung hasn’t raised its rates for everyone, just Apple.
The price hike comes in at a hefty 20 percent, which Apple was obviously reluctant to pay. Samsung has been solely responsible for creating the A6 (iPhone 5) chip and the A6x (iPad 4) chip. This is a dilemma for Apple, who has no one else to manufacture their internals. This lack of outside sources has basically forced Apple’s hand in the matter, and they’re reportedly paying the 20 percent higher price per chip.
This isn’t the first time we’re hearing about Apple’s distaste for Samsung’s chip production. In fact, the iDevice provider has been actively seeking other chip providers, a search that has lead them to talks with Taiwan Semiconductor Manufacturing Co. (TSMC). It’s suspected that Apple will begin purchasing developed chips and processors from the Taiwan-based developer in 2014. This long wait is chiefly due to the fact that Apple is still in a contract with Samsung until 2014.
Samsung is well aware that Apple is planning on putting the skids to their relationship, and the company expects to see a large decrease in orders. They’ve even stopped production of any future plants or development studios in anticipation that their sales are going to waiver a bit. It’s possible that this is the main reason Samsung is raising Apple’s price per chip.
Whatever the reason though, these two need to just move out and cut ties with each other altogether. This grade school romance of flicking spitballs at one another is starting to lose its cuteness factor and getting completely out of control. Hopefully when 2014 hits, well hear news that the companies have gone their separate ways. Until then though, expect to see more pushing and shoving.