Each and every iPhone and iPad Apple produces will cost a little more according to a new report.

TheSouth Korean daily newspaper Chosun Ilbo, reported Sunday that Samsung has increased the price of mobile processors supplied to Apple for use in its iDevices by 20%.

Chosun Ilbo learned about the price hike from an unnamed person familiar with negotiations between Apple and Samsung.

“Samsung Electronics recently asked Apple for a significant price raise in (the mobile processor known as) application processor,” the source said.

As may be expected, the new price did not sit well with Apple. “Apple first disapproved it, but finding no replacement supplier, it accepted the increase,” the source added.

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The new price has already taken effect.

Apple buys all application processors used in the iPhone and iPad from Samsung, totaling about 130-M units last year and more than 200-M units this year. Samsung has a long-term contract to supply the component to Apple until Y 2014.

According to a recent teardown analysis from IHS iSuppli, the iPhone 5 costs Apple approximately $207 to produce. The new A6 processor is $17.50, up from $15 in the iPhone 4S $549.00 at Apple Store.


Paul A. Ebeling, Jnr.

Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster’s Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.

Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.

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