Sources are claiming that Samsung has cranked up the price of application processors for iPad and iPhone devices by 20%. According to the Wall Street Journal, Apple rejected the price change, but after being unable to find anyone else that could fill the order, they accepted the hike. Just to put atht in perspective - Samsung's shipment of processor is expected to be going up to 200 million this year from 130 million last year.
While Samsung is big enough that their chips business operates more or less independently of the handset side, it's hard not to see that as a direct result of Apple's ongoing smartphone patent tiffs with the electronics giant. Most recently, Apple has been skirting the issue of posting a public apology in the UK for claiming that Samsung devices had copied their design, and have ultimately been ordered to pay Samsung's legal fees.
So, is a move like this fair game? is Samsung shooting themselves in the foot by estranging a high-volume customer, or a natural repercussion of Apple being so antagonistic in courts? Is there any chance that the increased price in application processors has nothing to do with what's happening on the legal side at all? What are the odds that Apple will be able to pick up the slack on these processors themselves eventually?