Samsung deliberately overcharging Apple for mobile processors

News Richard Goodwin 08:53, 13 Nov 2012

Samsung has been deliberately over-charging Apple 20 per cent to manufacture its chipsets, and will continue to do so until 2014

Samsung, the world’s biggest handset maker, has been deliberately over-charging Apple by as much as 20 per cent to build mobile processors for its iPhone and iPad devices, a report has revealed. 

According to MarketWatch, Samsung has effectively forced Apple to pay 20 per cent more for mobile processors. Apple first disapproved it, but finding no replacement supplier, it accepted the increase.

Apple and Samsung, now two of the biggest players in the mobile space, have officially been at war for the best part of 18 months now, appearing in courts the globe-over in a seemingly endless array of patent spats.  

It has been reported that Apple is attempting to reduce its reliance on Samsung, which manufactures many its iPhone and iPad’s core components.

Market Watch’s source claims that Apple will be reliant on Samsung for chip-building duties until at least 2014. Samsung will no doubt ramp up charges between now and then in order to get the maximum amount of cash out of Apple before it goes elsewhere. 

So what’s the lesson here? We think it’s pretty simple: don't bite the hand that feeds you – it just gets nasty.

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