Chipsets are one of the largest input costs for Samsung's mobile division. If Qualcomm increases prices, Samsung has no choice but to comply. With prices reportedly significantly higher, it seems Samsung aims to incorporate Exynos chips into more Galaxy devices starting this year to save money.
A recent report reveals Samsung has reduced the use of Exynos chips in Galaxy devices. Shipments of Exynos-powered devices in Q4 2023 reached only 13 million units, a 48% decrease from Q4 2022. Revenue from Samsung's smartphone chipsets also dropped by 44% during the same period.
According to Samsung Electronics' 2023 business report, the company's mobile division spent $8.87 billion on mobile chipsets in 2023. This marks a more than 3.1% increase from 2022. The company noted in the report that the price of mobile chipsets had increased by 'about 30%' compared to the previous year.
Samsung is reportedly planning to increase the usage of Exynos chipsets in Galaxy devices from 2024 onwards. This move aims to cut procurement costs. Additionally, Samsung will invest in improving the competitiveness of Exynos chips to address user concerns about performance and energy efficiency.
Reports suggest Samsung may exclusively use Exynos chips for the Galaxy S25. The new Galaxy A35 and Galaxy A55 also utilize Exynos chipsets, and the company is exploring replacing MediaTek chips in low-end products with its own.
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