Samsung Charging Extra for iPhone 5 Chips?
November 14, 2012

Maybe Samsung Won’t Be Charging Extra For iPhone 5 Chips

Michael Harper for — Your Universe Online

Perhaps it´s the tech media and the analysts who want Apple and Samsung to hate each other more than they actually do. The two already have a complicated relationship, at war on one plane, close partners on another. In recent weeks, different Asian news sources have reported that this somewhat awkward relationship has begun to fray around the edges. Now, for the second time in less than a month, Samsung has had to deny these claims and set the record straight.

Earlier this week, South Korean newspaper Chosun Ilbo cited an unnamed source who said Samsung would begin charging Apple up to 20% more for their iOS microprocessors. According to this newspaper, Apple initially balked at the idea, but later consented due to lack of options.

Today, a Samsung official has denied these claims, reportedly saying these chip prices are “set at the beginning of the year and aren't changed easily.”

Another report was released late last month that Apple would no longer be purchasing their LCD displays from Samsung, moving all their business to AU Optronics, LG and Sharp. Only one day after this report was released in the Korea Times, an official spokesperson for Samsung issued a statement, saying they have not cut the supply to Apple.

“Because of the patent lawsuit, the industry is guessing we tried to cut the supply. We didn´t do that. We will continue to supply panels for any customer,” explained the spokesperson.

Apple CEO Tim Cook later addressed this LCD debacle during their third quarter earnings call, saying, ““¦We continue to be a customer of Samsung and continue to have a commercial relationship.”

One noticeable difference between the previous Samsung correction and today´s: The first correction came via direct statement from an official spokesperson. Today´s announcement comes from an “unnamed official,” which doesn´t sound all that different from “unnamed source” familiar with the negotiations cited in the Chosun Ilbo story. Furthermore, there is no direct quote from this source, making this story about as reliable as the one it claims to refute.

These microprocessors are used in most of Apple´s mobile products, including the iPad, iPhone, iPod Touch and even Apple TV. Apple is said to have completely designed the new A6 chip on their own before sending it to Samsung to be built. Previously, this designing process would be a collaborative affair between the two companies.

Apple and Samsung´s torrid past has been well documented. Their grueling American court match topped headlines this summer and ended with a ruling that Samsung should pay Apple over $1 billion in damages, and while Apple has been able to make peace elsewhere, these 2 companies seem destined to battle one another.

Apple and HTC announced this weekend they were able to come to a settlement in some very similar legal disputes.

Though Apple was able to make peace and draw up a licensing plan with HTC, Samsung has since said they have no intention to reach a settlement with Apple. The South Korean company is now preparing themselves to question the validity of the $1 billion ruling due to jury misconduct. With such continued fighting between these two companies, it´s hard not to assume their other partnerships may have become shaky.