Samsung has raised the price of mobile processor supplied to Apple by 20% recently, reports “MarketWatch” (, quoting an unnamed “person familiar with negotiations between the two tech giants.”

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

According “MarketWatch,” Apple buys all APs used for production of iPhone and iPad from Samsung with the volume estimated to be 130 million units last year and more than 200 million units this year. Samsung has a contract to supply APs to Apple until 2014, the report adds.