Samsung is still reeling from the August jury verdict against them for $1 billion in the Samsung v Apple case in Northern California. And since the rumors of Apple looking to find another supplier other than Samsung for processors for the iPhone and iPad, Samsung will be losing some business when Apple makes that move. Today, there are rumors afoot regarding Samsung increasing their prices to Apple for those processors by 20%, which is a pretty healthy increase. Since they will be losing Apple as a customer, they can gain in the short term by hitting Apple and getting more money as a result. And Apple cannot just pass these increased costs on to consumers resulting in a little less profit from the iPhone and iPad.
Apple and Samsung have had a business relationship for years, but lawsuits over the past year have soured the providing of processors by Samsung to Apple. Since news of Apple planning on breaking the contract between the two, Samsung no longer has the need to maintain the business relationship. They are going to have to replace the lost business from Apple with other contracts which they are currently working on. But the rumored 20% price increase seems more like they are really sticking it to Apple. And why not? For the short term, Apple is stuck and is going to have to use Samsung over the next year. That means the next iPhone will continue to use Samsung processors.
All of this is rumor, but one can assume that due to the coming end of the relationship, we would certainly expect Samsung to want to offset future losses in revenue by increasing prices to Apple. The current contracts between Samsung and Apple have them providing processors next year. That provides Apple with a deadline to find other sources for processors for their mobile products. In the meantime, Samsung can impose prices increase which Apple has no other choice but to accept.
Seems like the relationships between Samsung and Apple is going to continue getting worse with this rumor.