Samsung Aims to Cut Costs by Increasing Use of Exynos Chips in Galaxy Phones

What you should know

  • Samsung has increased its expenditure on mobile chipsets in 2023, spending $8.87 billion, which is a 3.1% increase from the previous year, partly due to a 30% hike in chip prices.
  • The company has seen a significant decrease in the use of its own Exynos chips in its phones, with only 13 million Exynos-powered handsets shipped in Q4 2023, a 48% drop from Q4 2022, leading to a 44% reduction in revenue from Exynos chipsets.
  • Samsung is planning to use its Exynos chips more extensively in 2024, aiming to reduce costs and enhance the competitiveness of Exynos chips by improving their performance and power efficiency.
  • Despite earlier speculation, Samsung is integrating Exynos chips into its mid-range Galaxy A35 and Galaxy A55 models and plans to replace MediaTek chipsets with Exynos in its low-end models, which contradicts previous reports of MediaTek offering special deals to Samsung.

Full Story

Oh, Samsung’s been loosin’ its wallet a bit more these days. Why, you ask? Well, it’s coz they’ve kinda stepped back from their own Exynos chips. Now, they’re stuffing their fancy phones with Qualcomm’s Snapdragon goodies and the budget-friendly ones with MediaTek’s tech.

In the last quarter of 2023, only 13 million of their phones were running on Exynos. That’s a whopping 48% drop from the year before. Ouch. And, guess what? Their Exynos revenue took a 44% nosedive during the same time. Talk about a rough patch.

SamMobile spilled the beans that Samsung shelled out a cool $8.87 billion on chips in 2023. That’s a 3.1% hike from the previous year. Part of that uptick? A nasty 30% price jump on chips they just had to swallow. But hey, Samsung’s got a plan. They’re thinking of going back to Exynos for more phones in 2024, hoping to cut costs. Plus, they wanna beef up their Exynos game, making them faster and less thirsty for power.

Now, here’s a twist. Samsung might just ditch MediaTek chips for its cheaper phones. They’re eyeing their own Exynos SoCs for the Galaxy A35 and A55 mid-rangers and even for some budget models. This kinda flies in the face of last month’s chatter about MediaTek tossing Samsung some sweet deals to keep their chips in Galaxy handsets.

And then there’s this juicy bit. Despite rumors that Samsung would go all-in on Exynos for its 2025 flagship Galaxy S25 series, that’s looking less likely. Why? Because Qualcomm and Samsung just pinky swore on a multi-year deal. Looks like Qualcomm’s Snapdragon 8 series will be keeping Samsung’s Galaxy S flagships company for a while longer.

Derrick Flynn
Derrick Flynn
With over four years of experience in tech journalism, Derrick has honed his skills and knowledge to become a vital part of the PhonesInsights team. His intuitive reviews and insightful commentary on the latest smartphones and wearable technology consistently provide our readers with valuable information.


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