As strange as it sounds, the two biggest mobile players Apple and Samsung are actually very closely tied. Many of the components inside Apple’s iPhone, iPad and other mobile devices are sourced from Samsung. This is despite all of their legal battles around the world over “your device looks like my device” type issues.
Reports out of Korea are now suggesting that Samsung has increased the price of Apple’s mobile devices by nearly 20 percent. With no other foundry to turn to in the short term, Apple was forced into accepting Samsung’s price hike. While no reasons were given for the increase in cost to Apple, it could be caused by a $4 billion investment made in its Austin, Texas foundry where Apple’s A-class processors are manufactured. We’re not willing to rule out inter-company competition either.
KitGuru says: It appears as if Samsung is wanting to milk Apple as much as possible while they can.