Samsung Reportedly Hits Apple with 20% Price Increase for iOS Device Chips - MacRumors
Skip to Content

Samsung Reportedly Hits Apple with 20% Price Increase for iOS Device Chips

apple a6 chipMarketWatch reports on an article from Korean newspaper Chosun Ilbo claiming that Samsung has hit Apple with a 20% price increase on the A-series chips used to power Apple's iOS devices.

"Samsung Electronics recently asked Apple for a significant price raise in (the mobile processor known as) application processor," the person was quoted as saying in the report. "Apple first disapproved it, but finding no replacement supplier, it accepted the (increase.)"

The two firms have started to reflect the new supply price recently, the report added, citing the same person.

While Apple's latest A6 and A6X chips are custom designs from the company's in-house chip team, Samsung continues to serve as the foundry for manufacturing the chips used throughout Apple's iOS device lineup.

A bill of materials estimate for the iPhone 5 pegged the cost of the A6 chip at approximately $17.50, meaning that a 20% increase in price would translate to roughly $3.50 in increased costs per unit for Apple.

Apple has been reported several times in recent years to be attempting to move chip production to TSMC, but so far the company has been unwilling or unable to make the switch. TSMC's upcoming 20-nanometer process targeted for mass production in late 2013 could, however, serve as a catalyst for a move.

Popular Stories

Dynamic Island iPhone 18 Pro Feature

11 Reasons to Wait for the iPhone 18 Pro

Monday May 11, 2026 9:01 am PDT by
We're only four months out from the launch of Apple's premium next-generation smartphone lineup, and while we're not expecting a sea change in terms of functionality, there are still several enhancements rumored to be coming to the iPhone 18 Pro and iPhone 18 Pro Max. One thing worth noting is that Apple is reportedly planning a major change to its iPhone release cycle this year, adopting a...
iOS 26

iOS 26.5 Features: Everything New in iOS 26.5

Monday May 11, 2026 5:09 pm PDT by
Apple released iOS 26.5 after a few months of beta testing, and while it doesn't have the Siri features we were hoping for since those are being held until iOS 27, there are a handful of useful changes worth knowing about. Subscribe to the MacRumors YouTube channel for more videos. End-to-End Encryption for RCS Support for end-to-end encryption (E2EE) for RCS messages between iPhone and...
General Apps Reddit Feature

Reddit Starts Blocking Mobile Website, Pushing Users to App Instead

Monday May 11, 2026 6:10 am PDT by
Social network Reddit recently began blocking mobile visitors to its website while pushing them to download the official Reddit app, and it's fair to say that the move is not going down well with users. If you visit reddit.com on your iPhone today, you may see a new popup that can't be dismissed, asking you to "get the app to keep using Reddit." A Reddit spokesperson told Ars Technica...

Top Rated Comments

Hellhammer Avatar
176 months ago
Lesson Samsung needs to learn.
"Don't bite the hand that feeds you cause one day the hand will stop feeding you if you keep biting it".
That's the lesson Apple needs to learn. Samsung produces everything from LCDs to NAND and SoCs which makes them independent, whereas Apple doesn't own a single factory. Without Samsung, Apple couldn't make a single iPhone or iPad but Samsung would do just fine without Apple, so who is feeding who?
Score: 59 Votes (Like | Disagree)
176 months ago
Hey Tim, how's Apple's thermonuclear war going?
Score: 42 Votes (Like | Disagree)
wordoflife Avatar
176 months ago
At some point Apple will just find a new supplier and it'll hurt Samsung more in the end.

Good job.
Score: 38 Votes (Like | Disagree)
Sky Blue Avatar
176 months ago
got to get that $1 Billion back some how!
Score: 28 Votes (Like | Disagree)
the8thark Avatar
176 months ago
This makes Apple more likely to hasten their move away from Samsung. if this rumour is true. And Apple away from Samaung = $0 for Samaung as they won't be buying parts from Samsung anymore.

Lesson Samsung needs to learn.
"Don't bite the hand that feeds you cause one day the hand will stop feeding you if you keep biting it".
Score: 26 Votes (Like | Disagree)
JaySoul Avatar
176 months ago
Samsung and Apple should buy a kitten together.
Score: 25 Votes (Like | Disagree)