Samsung raises processor prices 20 percent on Apple.
And the worst part is..
Apple doesn’t really have a choice but to PAY the extra 20%.
While Apple is working on securing agreements with two other processor manufacturers in Taiwan TSMC and Kinsus Interconnect Technology Corporation. Apple reportedly purchased over 200 million processors from Samsung this year, and if it maintains its past and current device sales growth trends, the volumes it requires will only increase.
It appears to be the perfect storm as Samsung will erode Apple’s product margins and use the money to directly subsidize their phones.
This is why most companies..
(not Apple of course, they’re different)
..never single-source components.
I guess that’s what happens when you sue the hell out of your supplier and expect them to just “take it”. In this instance, I would say Samsung has certainly “taken it” 20% more to be exact. 😉
-Kevin
Kevin is an Online and Mobile Marketing Strategist who has worked with companies of all sizes over the last 6 years. You can follow Kevin on any of the social platforms below.
