Samsung: We did not raise chip fab prices on Apple

“After reports earlier in the week that the South Korean technology giant was raising application processor (AP) prices on Apple by as much as 20%, a Samsung Electronics official denied the reports to The Hankyoreh, a Seoul-based newspaper,” Chris Ciaccia reports for TheStreet.

“The unnamed official noted that prices are set at the beginning of the year and aren’t changed easily,” Ciaccia reports. “If Samsung were to raise prices by 20%, Piper Jaffray analyst Gene Munster noted it would be a 1% to 2% hit to gross margins, but that Apple would eventually move to another supplier, and negotiate more favorable rates.”

Ciaccia reports, “A price hike from one of its most important component suppliers isn’t one of [Apple’s] worries, for now.”

Read more in the full article here.

[Thanks to MacDailyNews Readers “Fred Mertz,” “Dan K.,” and “Sarah” for the heads up.]

19 Comments

          1. Oh you’d be astonished at the flavor of some of the other varieties of political garbage out there. Whiffs of many different scents to be sure 3I3c7ro. I don’t think it is benign though, just not spewed out at non political sights. Oh well back to the tech news. Have a good one, I enjoy reading your posts.

    1. Please deny Democratic President Bill Clinton’s nefarious deeds while President like signing the banking act that precipitated the banking crisis (without any pressure from Republicans), or being impeached for lying, or adultery in and out, so to speak, of office.

      By the way I’m a Democrat and you don’t have much to be proud of either actually. Both parties could give a rat’s ass about it’s citizens. And we fools who vote perpetuate the status quo.

  1. Apple has contracts with its suppliers, and Apple has pre-paid $Billions to secure component supply and pricing. I sincerely doubt that Samsung or any other major Apple supplier has the option of jacking pricing except, potentially, when a contract is up for renewal, or subject to special clauses in the contract.

    Some people like to create controversy where none exists. Unfortunately, far too many people are willing to listen to the ones who like to kick the anthill.

  2. …Apple would eventually move to another supplier, and negotiate more favorable rates.

    Yeah, obviously.

    So what’s the story here? I don’t like either alternative:

    1) Samsung lied again again again,
    OR
    2) Chosun Ilbo lied,
    OR
    3) Chosun Ilbo didn’t verify the information from their ‘person familiar with negotiations between the two tech giants’.

    I like FACTS. Let’s not tear down Samsung without factual justification. This isn’t a lynch mob. We want Samsung on their knees because they DESERVE it, not because of some journalistic blundering and BS.

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.