Samsung seeks to save money by using its own Exynos chips on more Galaxy phones،
Samsung spent more on the application processors (APs) it uses in its phones. Indeed, Samsung has moved away from using its own Exynos chips and is integrating more of its high-end phones with Qualcomm's Snapdragon chipsets and its low-end handsets with MediaTek SoCs. Samsung only shipped 13 million Exynos-powered handsets during Q4 2023, down 48% from Q4 2022. As a result, Samsung generated 44% less revenue from its Exynos chipsets in during the fourth quarter of 2023, year over year.
By SamMobile, Samsung spent $8.87 billion on mobile chipsets in 2023, an increase of 3.1% from what Samsung paid for these parts the previous year. Part of this increase is due to the 30% rise in chip prices that Samsung faced in 2023. By using its own Exynos chips in more phones in 2024, Samsung believes it can reduce costs. It also plans to invest money to make its Exynos chips more competitive by increasing the performance and power efficiency of those components.
Samsung could save money by replacing the MediaTek chips used in its inexpensive models with its own Exynos SoCs
Samsung equips its mid-range Galaxy A35 and Galaxy A55 with Exynos chips and will replace MediaTek chipsets with its own Exynos APs on lower-end models. This appears to contradict reports that emerged last month that MediaTek was offering special deals to Samsung in a bid to get the smartphone maker to use more of its chipsets in low-end Galaxy handsets.
Additionally, the rumor that Samsung will use Exynos chipsets only for its 2025 flagship Galaxy S25 series also seems less likely after last month's announcement that Qualcomm and Samsung have signed a multi-year deal. The deal will allow Qualcomm to continue supplying Samsung with its Snapdragon 8 chips for Sammy's flagship Galaxy S line.
