Mr. SHEIKH
In a significant development, Samsung’s expenditure on Smartphone chipset costs has skyrocketed to nearly $7 billion in 2023, marking a staggering 204% increase since 2019. This surge in costs, largely attributed to the company’s reliance on external suppliers like Qualcomm for Snapdragon chipsets, is forcing Samsung to reconsider the features included in its flagship Galaxy range.
The escalating expenses shed light on why Samsung has been lagging in enhancing the specifications of its Galaxy S flagship series. Developing cutting-edge chipsets on advanced manufacturing processes is an expensive venture, evident in the $7.1 billion bill paid by Samsung in the previous year. With 2023 already reaching $6.943 billion, projections suggest a further 10% increase by year-end, signifying a persistent challenge for the tech giant.
To address this financial strain, it becomes imperative for Samsung to reduce its dependency on Qualcomm and leverage its in-house Exynos range. The current situation might explain why Samsung appears to trail behind competitors in providing top-tier specifications, particularly in terms of RAM. Recent rumors suggest that the upcoming Galaxy S24 lineup will be limited to 12GB RAM, while rivals offer devices with 24GB RAM at a lower price point.
Looking ahead, the scenario is not expected to improve, with Qualcomm’s Snapdragon 8 Gen 3 rumored to be pricier than its predecessor. Furthermore, the impending Snapdragon 8 Gen 4, featuring custom Oryon cores, is anticipated to escalate costs even further.
It is crucial for Samsung to invest in advancing its Exynos chipset development to compete effectively. Creating in-house SoCs equivalent to competitors’ offerings could potentially save billions in costs. Failure to navigate this challenge could lead Samsung into a detrimental cycle, potentially diminishing the appeal of future Galaxy S devices and eroding brand value.
Source: Revegnus
GIPHY App Key not set. Please check settings