Samsung Shifting Strategy to Exynos Chips in Galaxy Devices for Cost Efficiency

Highlights

• Samsung reduces reliance on Qualcomm with a strategic pivot to Exynos chips.
• Galaxy S24 series reintroduces Exynos alongside Snapdragon variants.
• Exynos-powered device shipments see a significant decline in Q4 2023.
• Plans to boost Exynos use in Galaxy devices from 2024 to enhance cost savings.

Samsung is steering towards a shift in its approach to mobile chipsets, with a renewed focus on integrating Exynos chips into a broader array of its Galaxy devices.

This will mark significant pivot from Samsung’s recent reliance on Qualcomm and MediaTek chipsets, especially in its high-end and low-end devices respectively.

Exynos to the Fore: Reducing Dependency on Qualcomm

Samsung’s dependency on Qualcomm chipsets for its premium range, including the foldable series and the Galaxy S23 lineup, has notably increased, leaving the Exynos chips in the shadows.

The Galaxy S24 series saw the re-introduction of Exynos into the market, albeit alongside Snapdragon variants in specific regions, signaling the beginning of a strategic shift.

With chipset costs being one of the heftiest expenses for Samsung’s mobile division, the company finds itself in a precarious position whenever Qualcomm decides to hike its prices.

In 2023, Samsung shelled out a whopping $8.87 billion on mobile chipsets, registering a 3.1% increase from the previous year, amidst a backdrop where chipset prices surged by approximately 30%.

The decline in Exynos chipset usage within Galaxy devices became evident in Q4 2023, with shipments of Exynos-powered devices dropping to 13 million units, a stark 48% decrease from Q4 2022.

A Cost-Saving Maneuver: Reinvigorating Exynos

In light of these challenges, Samsung is now setting its sights on revitalizing the Exynos lineup, with plans to incorporate these chipsets across more Galaxy devices starting from 2024.

For Samsung, it is not just about cost-cutting but also about substantial investment in enhancing the Exynos chipsets’ competitiveness in terms of performance and power efficiency.

Performance concerns over the past few years, as compared to the Qualcomm chipsets, have previously deterred Samsung from relying heavily on its in-house chips.

However, the Exynos 2400’s debut in the Galaxy S24 series serves as a testament to Samsung’s renewed commitment to its chipsets.

Moreover, the rumour mill suggests that the Galaxy S25 series might transition to being Exynos-exclusive.

We’ll see in future updates just how much belief the company places in its Exynos stock.

FAQs

Why is Samsung focusing on Exynos chips for its Galaxy devices?

Samsung aims to decrease its dependence on Qualcomm and MediaTek chipsets by integrating more Exynos chips into its Galaxy lineup. This shift is driven by the need to reduce chipset procurement costs and increase performance and power efficiency.

What led to the decreased usage of Exynos chips in Samsung devices?

A significant reliance on Qualcomm for high-end models and MediaTek for some low-end phones led to a decline in Exynos chipset integration. This was further evidenced by a 48% drop in Exynos-powered device shipments in Q4 2023 compared to Q4 2022.

How much did Samsung spend on mobile chipsets in 2023?

Samsung’s mobile division spent approximately $8.87 billion on mobile chipsets in 2023, marking a 3.1% increase from 2022 amidst a backdrop of chipset prices rising by around 30%.

What changes can we expect from Samsung’s Exynos chipsets in the future?

Samsung plans to incorporate Exynos chipsets across more Galaxy devices starting from 2024. This includes investments to make Exynos chipsets more competitive in terms of performance and power efficiency.

Will the Galaxy S25 series use Exynos chipsets exclusively?

Rumors suggest that Samsung may transition to using Exynos chipsets exclusively for the Galaxy S25 series as part of its strategy to rely more on its in-house chips.

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