Samsung Electronics is taking a decisive step to assert its dominance in the AI phone market by using only Qualcomm’s Snapdragon processors for its upcoming Galaxy S25 series. This marks a departure from the strategy used for the Galaxy S24, which used both Samsung’s own Exynos and Qualcomm’s Snapdragon chips. Industry experts see this as a strategic move by Samsung to outpace rivals like Apple and major Chinese brands by focusing on top-end performance.
Exclusive Use of Qualcomm's Snapdragon 8 Gen 4
The Galaxy S25, which is scheduled to be released in January next year, will be powered solely by Qualcomm’s Snapdragon 8 Gen 4 chip. The move marks a departure from Samsung’s past practice of using a mix of Snapdragon and Exynos processors in its flagship devices. The Snapdragon 8 Gen 4 is expected to offer a 30% improvement in core performance, particularly in areas such as AI functions and graphics processing. This exclusive partnership with Qualcomm aligns with Samsung’s goal of using only the highest-performance components, ensuring that the Galaxy S25 sets a new standard in the smartphone industry.
Shifting Focus: Exynos Chips in Foldable Phones
While Samsung’s Exynos 2500 processor, developed by its System LSI Division and manufactured by its Foundry Division, won’t be featured in the Galaxy S25, it’s not being sidelined entirely. Instead, Samsung plans to use the Exynos 2500 in a foldable phone scheduled to be released in the second half of next year. The shift suggests Samsung is focusing its in-house processor efforts on niche markets like foldables, where competition is less intense and where the unique features of Exynos chips work better.
The Brain Behind the Power: Application Processors
Application processors (APs) are critical to modern smartphones, acting as the ‘brains’ responsible for AI capabilities, graphics, and overall device performance. Samsung has historically balanced its AP usage between Qualcomm’s Snapdragon and its own Exynos to manage costs and improve AP design and manufacturing capabilities. However, the strategic shift to using only Snapdragon for the Galaxy S25 series highlights a focus on stability and performance, potentially to provide a smoother user experience and solidify its position against Apple in the premium phone market.
Galaxy S25: A Move to Take on Apple
Samsung’s decision to use only Qualcomm chips in the Galaxy S25 is a direct challenge to Apple, which dominates the high-end smartphone market. In terms of shipment volume, Samsung leads the global market with a 20% share in the second quarter compared to Apple’s 16%. However, in terms of sales revenue, Samsung lags far behind with a share of only 16% compared to Apple’s 50%. This discrepancy is largely due to Apple’s dominance in the premium sector, which commands higher prices and margins.
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The Galaxy S25 comes with the latest Snapdragon 8 Gen 4, which is Samsung's attempt to bridge this gap. By focusing on maximizing the device's performance and positioning it as a leader in AI capabilities, Samsung aims to attract more premium market customers and improve its position against Apple.
Qualcomm's Custom Chip for Galaxy S25 Ultra
In order to strengthen its tie-up with Samsung, Qualcomm has launched a special version of the Snapdragon 8 Gen 4 called the “Snapdragon 8 Gen 4 for Galaxy.” This special chip is set for the Galaxy S25 Ultra and will be manufactured using TSMC’s advanced 3-nanometer technology. According to reports, this chip will match the power of Apple’s A18 that is supposed to come with the iPhone 16. This move by Qualcomm not only increases the specifications of the Galaxy S25 but also helps it stand out in the AI and high-performance phone market.
Exynos 2500: Focus on Stability and Efficiency
Even though the Exynos 2500 won’t be seen in the Galaxy S25, Samsung isn’t giving up on its chip work. Instead, the focus has shifted to making the Exynos 2500 even better. Samsung’s Device Solutions (DS) Division is working to reduce the chip manufacturing process to below 3nm to make its chips more competitive. The Exynos 2500 is likely to appear in Samsung’s upcoming foldable phones, the Galaxy Fold and Flip 7, which are expected to be released in August of next year.
Exynos and Foldable: A Strategic Game
By keeping the Exynos 2500 for foldable phones, Samsung can access the unique look and features of these devices that appeal to a different segment of the market. This allows Samsung to advance its chip technology while staying strong with Qualcomm’s Snapdragon in the high-end segment. The foldable phone market is growing, and Samsung’s leadership in this space gives it a significant place to showcase the power of its Exynos chips without going head-to-head with high-end models using Snapdragon.
Samsung's Dual Strategy for Market Dominance
Samsung’s plan with the Galaxy S25 is a dual one: using Qualcomm’s Snapdragon chips to boost the top line while also working on Exynos chips for specialized uses. This would not only help Samsung keep costs down, but also give it control over its supply chain and future technology growth.
By focusing on high-speed parts and optimizing its devices for AI, Samsung is looking to secure its leadership in the phone market as the need for AI-powered features grows. The Galaxy S25, powered by the Snapdragon 8 Gen 4 chip, will be a key device in Samsung’s plan to outpace its rivals and capture a larger share of the high-end market.
Looking Ahead: Samsung's Competitive Advantage
As the mobile phone market becomes more focused on AI and performance, Samsung’s plan to use only the best parts in its flagship devices clearly demonstrates its intention to lead the way. The exclusive deal with Qualcomm for the Galaxy S25 and ongoing work on Exynos chips for foldable phones puts Samsung in a good position to target both mainstream and niche markets.
As Samsung prepares to launch the Galaxy S25 in January, the tech world is eager to see how this plan will play out. By focusing on performance, reliability, and AI, Samsung is not only following trends, but also shaping the future of the phone market. Whether this move will help Samsung overtake Apple and other competitors remains to be seen, but it’s clear that the Galaxy S25 will play a key role in the race for AI phone dominance.