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Posted by on Nov 12, 2012 in Economy and Business, Hardware |

Samsung increases 20% the price of the processors to Apple

Samsung increases 20% the price of the processors to Apple

Despite their disputes in court, Samsung and Apple still maintain a business relationship is extremely important: the purchase of processors. Each product in the range of mobile-iPad, iPod and iPhone, contains a chip manufactured by Samsung. Today, in an action without apparent justification, the Korean company has decided to increase you 20% of the sales price . Apple, no other provider to turn to in this time, has had to accept the deal.

How does this affect the picture? Well, Apple and have a contract that will break through 2014, so the transition is something that is already agreed. In two years, the company that Steve Jobs built must find another manufacturer, especially because the relationship with the Asian company is more than worn. That is the perspective that takes Tim Worstall at Forbes : time to burn bridges.

Many times, you increase prices just because you can. Whoever wants more of what you do and you can not get anywhere else: you have them in a barrel, so why not a little acanalarlos? Sometimes you can do that but you choose not to do: rather be greedy in the long term, not the short.

According to Worstall, which prevents many companies-in this case, Samsung-raise prices arbitrarily, is that buyers can find another supplier, or otherwise, also become producers, and therefore competitors- . So why the sudden decision to Samsung? It’s simple: because there is no long term. You can not expect a renewal contract with Apple, so it’s the ideal time to make the most profit possible.

Long ago that Apple is looking for options, but still can not release his dependence Samsung processor concerned. It is said that the Taiwanese TSMC will be chosen . Another option is for Apple to invest in creating their own processors, something that sounds crazy, especially when you consider that they have the capital to try. Samsung has made the most logical decision: try to get the most out of a hopeless relationship. All that remains to be seen is whether Apple will make the decision to affect the market, ie accept the increase and “subsidize” the cost-ergo, reduce their profit margins, or increase a few dollars under the guise of increased production.

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