Samsung is set to decide on the mobile application processor (AP) for its upcoming flagship smartphone, the Galaxy S25, by early next month. (Image courtesy of Samsung Electronics)
SEOUL, Oct. 16 (Korea Bizwire) – As Samsung Electronics grapples with an earnings shock in its third-quarter results, the company’s Mobile eXperience (MX) and Networks (NW) divisions have managed to remain profitable, earning praise for their resilience.
However, the tech giant now faces a critical decision that could significantly impact its future smartphone offerings and bottom line.
According to industry sources, Samsung is set to decide on the mobile application processor (AP) for its upcoming flagship smartphone, the Galaxy S25, by early next month.
This choice comes at a crucial time as the company navigates rising costs and intensifying competition from Chinese rivals like Xiaomi.
The central dilemma revolves around whether to use Samsung’s in-house Exynos 2500 chip or opt for Qualcomm’s Snapdragon processor.
While initial expectations favored the Exynos 2500, concerns about production yields have led to speculation that Samsung might exclusively use Qualcomm’s offering.
This decision carries significant financial implications. The AP represents a substantial portion of a smartphone’s cost, and relying on an external supplier like Qualcomm could further strain profit margins.
Samsung’s MX division has already seen its operating profit decline despite increased sales, largely due to rising costs.
“We will consider the possibility of using Exynos until the last moment,” a Samsung representative stated, highlighting the company’s ongoing deliberations.
The choice is further complicated by challenging market conditions. Market research firm TechInsight predicts that smartphone shipments will stagnate at last year’s levels due to inflation risks and geopolitical tensions.
Additionally, Chinese competitors are gaining ground not only in smartphones but also in the tablet market, where Samsung holds a 20% market share as the second-largest player.
Samsung’s ability to maintain its market leadership may hinge on whether the Galaxy S25 can deliver both performance and cost-effectiveness.
As the company prepares to unveil its new flagship early next year, all eyes will be on how it balances technological innovation with financial pragmatism in an increasingly competitive landscape.
Kevin Lee (kevinlee@koreabizwire.com)
