Qualcomm is expected to significantly boost profits, driven by rising demand from both Samsung and Chinese smartphone makers. Recent rumors indicate that the upcoming Samsung Galaxy S25 series could exclusively use Qualcomm’s Snapdragon 8 Gen 4 chip globally, a move that could solidify Qualcomm’s position in the mobile chipset market.
According to industry analyst Ming-Chi Kuo, Samsung’s increased demand for Qualcomm’s Snapdragon 8 Gen 4 strongly suggests this exclusivity for its next flagship phones. This collaboration between Samsung and Qualcomm is expected to play a major role in the success of both companies, particularly Qualcomm, whose profits could see a sharp rise. Several factors contribute to this optimistic outlook, including a longer product shipping period and growing demand for high-performance chips in markets like China.
The growing influence of Chinese smartphone brands in mainland China is reshaping the market, with companies like Xiaomi, Oppo, and Vivo increasing their market share. In contrast, Samsung’s presence in the region remains minimal, and Apple’s sales growth has plateaued. This situation further highlights the need for premium chipsets like Qualcomm’s Snapdragon 8 Gen 4, as competition in the global smartphone market intensifies.
Meanwhile, Samsung recently confirmed the development of the 3nm Exynos 2500 chip during the launch of the Exynos 2400, which powers the Galaxy S24 and S24 Plus in many regions outside the US. However, Samsung Foundry is facing production challenges with its 3nm process, leading to speculation that the Exynos 2500 might be delayed or canceled. As a result, Samsung is expected to rely heavily on Qualcomm’s Snapdragon chips for its Galaxy S25 series, further strengthening Qualcomm’s position in the market.
There have been rumors about the MediaTek Dimensity 9400 chip potentially powering the standard Galaxy S25. Still, more recent reports suggest that this chipset could instead be used for the Galaxy S25 FE model, which is expected to launch next year. This development mirrors the situation with the Galaxy S23 series, where Samsung leaned heavily on Qualcomm chips.
While this reliance on Qualcomm benefits users by delivering consistent performance across regions, it could lead to higher device prices. Samsung has traditionally managed costs by balancing the use of its in-house Exynos chips and Qualcomm’s Snapdragon processors. However, if Qualcomm remains the only supplier for Samsung’s flagship phones, the lack of competition could limit Samsung’s ability to negotiate better pricing, potentially driving up costs for consumers.
In conclusion, the collaboration between Samsung and Qualcomm is set to reshape the smartphone landscape in 2024. As Qualcomm’s Snapdragon 8 Gen 4 looks poised to dominate the Galaxy S25 series globally, both companies are likely to experience significant gains, although consumers may face higher prices as a result. The ongoing developments in chipset technology and market dynamics will continue to shape the strategies of major smartphone makers.
