Samsung has relied heavily on Qualcomm chips in their smartphones over the past few years. This dependence has led Samsung to spend significant money on Qualcomm chips. However, there are signs that Samsung is looking to reverse this trend and save money by integrating more Exynos chips into their smartphone lineup.
According to financial reports from Samsung, the company spent $8.87 billion on chips last year, with an expected increase of 3.1% this year. The report also mentions that smartphone chip usage is expected to increase by about 30% compared to 2022.
One reason for Samsung’s increasing processor chip costs is the decline in the use of Exynos chips. A recent report showed that the number of devices using Exynos chips sold in the fourth quarter of 2023 totaled 13 million units, a 48% decrease from the previous year. This decline is due to Samsung’s strategy of equipping high-end smartphones with Qualcomm chips and cheaper smartphones with MediaTek chips.
To combat this trend, Samsung is expected to integrate more of its proprietary Exynos chips into new smartphone models. This new strategy has already been applied to several popular devices in the high-end segment, such as the Galaxy S24 and S24+ in Europe. The recent Galaxy A35 and A55 models also come with an Exynos chip, indicating that this will be a strong bet by Samsung for more low-cost smartphones in the future.