An increase in the price of the Samsung Galaxy S25 series is expected due to the change in Qualcomm chipset.
The price of the Samsung Galaxy S25 could increase due to the use of a Qualcomm chipset.
The Samsung Galaxy S25 series will be officially launched on January 22 during the company's Galaxy Unpacked event. Users are excited for the debut of the Galaxy S25, Galaxy S25+, and Galaxy S25 Ultra, although a significant shift is occurring in the background that could impact the pricing of these anticipated smartphones.
It is rumored that all models in the series will be equipped with Qualcomm's Snapdragon 8 Elite chipset, moving away from Samsung's traditional reliance on its own Exynos processors, particularly in markets like India. Traditionally, Samsung has used Snapdragon chipsets in regions such as the U.S., Canada, and China, reserving Exynos chips for other markets.
The shift is due to Samsung facing challenges with the Exynos 2500 chipset, as reports indicate that the yield performance of Exynos chips is low, with only 20-30% meeting the necessary standards. For mass production, a minimum yield of 70% is expected, which has led the company to opt for Qualcomm's solution.
Due to these production difficulties, Samsung has decided to use the Snapdragon 8 Elite chipset in all regions, including India, which could result in more uniform performance; however, this may also translate to an increase in the price of the Galaxy S25 series. Qualcomm is expected to charge around $190 for each Snapdragon 8 Elite processor. This new chipset not only offers improvements in processing power, artificial intelligence capabilities, and overall efficiency, but it will also be the first to be manufactured using TSMC's advanced 3nm process.
This price increase is not unusual for Samsung. Previously, the company had faced similar issues with low yield performance from the 4nm node for the Snapdragon 8 Gen 1, leading to a shift in production to TSMC for the Snapdragon 8+ Gen 1 revision. As of the third quarter of 2024, TSMC controlled 64% of the contract foundry market, while Samsung Foundry lagged behind with only 12%.
With the official unveiling of the Galaxy S25 series in sight, the shift to the Snapdragon 8 Elite chipset could result in a noticeable increase in prices. While this change promises better performance and a more consistent experience across all regions, consumers should be prepared for the possibility of a higher price due to the increased production costs of the new chipset. As we approach 2024, the Galaxy S25 series is set to be a highly anticipated release but may also come with a higher cost.