Samsung Denies Hitting Apple With 20% Price Increase
A Samsung official has denied that the company raised processor prices on Apple by 20%, reports The Hankyoreh, a Seoul-based newspaper.
The unnamed official noted that prices are set at the beginning of the year and aren't changed easily.
Piper Jaffray analyst Gene Munster noted that if Samsung were to raise prices by 20% it would be a 1% to 2% hit to gross margins; however, Apple would eventually move to another supplier for more favorable rates.
"Apple may eventually shift production to another vendor (TSMC has been mentioned in various news reports), but in the meantime, they appear to have no other avenue," said Munster. "We believe that if Apple were to move to another vendor in the next year or two, they may be able to negotiate better chip prices, which would roll back the impact from the Samsung price increase."