Samsung could be compelled to implement a 30% price increase for its Galaxy S25 series due to exclusive use of the Snapdragon 8 Gen 4 chipset. The long-awaited Exynos 2500 might not be ready on time, leaving Samsung with limited options.
Reason for the Price Hike
According to multiple sources, the Snapdragon 8 Gen 4 is likely to be significantly more expensive than its predecessor, Snapdragon 8 Gen 3, which may force Samsung to immediately raise the prices of its Galaxy S25 models. Additionally, Samsung’s low 3nm GAA production yield may further complicate the situation.
Dual-SoC Strategy in Question
Although Samsung had previously announced a strategy to combine the Exynos 2500 and Snapdragon 8 Gen 4 in its 2025 flagship models, the Exynos chipset still lacks a confirmed launch date. This uncertainty has led to speculation that Samsung may have to rely solely on Qualcomm’s chipset, potentially driving up costs even further.
Impact on Profits
If these rumors hold true, Samsung might pass the increased costs onto consumers or absorb some of the price difference, which could negatively impact the company’s profits. Additionally, Qualcomm is expected to release two versions of the Snapdragon 8 Gen 4 – one with an integrated 5G modem and another without, potentially raising the price even more.
Conclusion
Regardless of the strategy Samsung chooses, the Galaxy S25 series is likely to see a price increase. Samsung’s engineers will need to find ways to minimize these costs to remain competitive in the market.
By Andrej Kovacevic
Updated on 31st August 2024