Remember that billion-dollar verdict Apple won against Samsung? Well, Samsung is expected to make all of that back and then some with a 20 percent increase in the price it charges to Apple for the A6 processors used to power iPhones and iPads. A quick calculation based on a current price estimate of $17.50 per unit at iSuppli and a 200 million-unit 2012 sales estimate at MarketWatch, the increase would bring Samsung an additional $700 million per year if sales stayed flat at 200 million units (which we know it won't ).
Obviously, Apple didn't just take this lying down - it reportedly tried to find other suppliers to manufacture the A6 processor, but was unable to. In other words, Apple has no choice but to accept this price hike (Samsung's contract with Apple expires in 2014). Increased production costs could account for some of this increase, as could Samsung's recent $4 billion investment in building a chip foundry in Texas. However, the more likely cause for the price increase is retaliation for Apple's recent court victory and/or an attempt to recoup the $1 billion awarded by the jury (in case Samsung's appeal fails).
In any event, Apple will likely be able to find another manufacturer that can build to Apple's hardware specifications by the time Samsung's contract runs out, but no company is presently able to do so. Even though Samsung will lose a major customer when its contract with Apple expires, increased sales of its Galaxy S and Galaxy Note devices over the next two years should soften the blow considerably.