Samsung has been spending extra to purchase the appliance processors (AP) it makes use of on its telephones. That is as a result of Samsung has backed away from utilizing its personal Exynos chips and packs extra of its high-end telephones with Qualcomm’s Snapdragon chipsets and low-end handsets with MediaTek’s SoCs. Samsung shipped solely 13 million Exynos-powered handsets in the course of the fourth quarter of 2023, down 48% from the fourth quarter of 2022. In consequence, Samsung took in 44% much less income from its Exynos chipsets throughout This fall 2023 year-over-year.
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SamMobile, Samsung spent $8.87 billion on cellular chipsets in 2023, a 3.1% enhance over what Samsung paid for these components the earlier yr. A part of that enhance was as a result of 30% hike in chip costs that Samsung needed to cope with in 2023. Through the use of its personal Exynos chips on extra telephones in 2024, Samsung believes that it could possibly decrease its prices. It additionally plans on investing cash on making its Exynos chips extra aggressive by growing these parts’ efficiency and energy effectivity.
Samsung might get monetary savings by changing the MediaTek chips used on its low-priced fashions with its personal Exynos SoCs
Samsung is packing its Galaxy A35 and Galaxy A55 mid-rangers with Exynos chips and can change MediaTek chipsets with its personal Exynos APs on low-end fashions. This appears to contradict stories that surfaced final month saying that MediaTek was providing Samsung particular offers in an try to get the smartphone producer to make use of extra of its chipsets on low-end Galaxy handsets.
Moreover, the rumor that Samsung will use Exynos chipsets just for its 2025 flagship Galaxy S25 sequence additionally appears much less seemingly after final month’s information that Qualcomm and Samsung signed a multi-year pact. The deal will lead to Qualcomm persevering with to produce Samsung with its Snapdragon 8 sequence chips for Sammy’s Galaxy S flagship line.