Well, can’t say we didn’t see this coming. Now that Samsung is selling more volume than Apple, it only makes sense for Samsung to push Apple away from it’s manufacturing; Samsung needs the capacity for the S4.
Every iPhone or iPad or iPod touch that you see in the wild, they all have processors inside that were manufactured by Samsung. Samsung, knowing that Apple simply can’t call another company and ask them to make their chips, raised the prices of said chips by 20% according to MarketWatch. There’s not much Apple can do, and the report confirms that, saying Apple accepted the price bump. It also goes on to say that Samsung made roughly 130 million processors for Apple in 2011. This year that number is expected to surpass 200 million. And the contract that Apple and Samsung have, it doesn’t expire until 2014.