Samsung

Samsung May Power Future Flagships with In-House Chips

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Qualcomm signed a multiyear deal with Samsung to provide a Snapdragon processor for the future flagship Galaxy smartphones, which has already been revealed, during its earnings calls for the fourth quarter 2023. 

This revelation comes true, as last year’s Samsung Galaxy S23 was dedicatedly powered by Qualcomm’s Snapdragon 8 Gen 2, and this year’s Galaxy S24 Ultra is truly powered by Snapdragon 8 Gen 3, and the rest of the two base and plus variants also feature the same, but in particular regions. All this results in Samsung’s reliance on Qualcomm for high-end chipsets, which has grown significantly over the past few years. 

In the name of collaboration, Samsung is investing a huge amount in chipsets. However, this year, somewhere, Samsung brought back the Exynos with this year’s Galaxy S24 lineup. Since Qualcomm raises costs, Samsung has a tiny choice but has to pay what it demands. Because of this prospect, it is genuinely expected that Samsung will choose to put the Exynos chipsets in a lot more Galaxy devices this year to save money. 

The recent matrix has revealed that Samsung has lowered the use of Exynos chips in Galaxy smartphones. In the fourth quarter of 2023, only 13 million Exynos-powered devices shipped, which is 48% less as compared to the fourth quarter of 2022. Samsung’s revenue from smartphone chipsets decreased by 44% during the same time. 

A reason behind the decline was mainly due to Samsung purchasing more chipsets from Qualcomm for flagship devices and also MediaTek for powering a few affordable smartphones, whereas Exynos chipsets are primarily used in Galaxy devices. 

Jumping on the matrix of Samsung Electronics’ 2023 business report, the company’s mobile division spent $8.87 billion just on mobile chipsets back in 2023, which is 3.1% more as compared to 2022. For more details, the firm reports that the price of mobile chipsets has increased by 30 percent as compared to the previous year. 

A recent report reported that the Korean giants are gearing up to increase the use of their own Exynos chipsets in Galaxy smartphones from 2024 onwards, and this already happened with the Exynos 2400’s inclusion in the Galaxy S24 lineup. It is also rumored that Samsung could choose Exynos-only for the Galaxy S25 series. 

The recently debuted Galaxy A55 and Galaxy A35 are also powered by the Exynos chipset, and it is also expected that it will also remove MediaTek chipsets from its low-range lineup. 

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