Samsung, one of the leading smartphone manufacturers, has a diverse range of chipset suppliers that contribute to various models in different proportions. These suppliers include Qualcomm, MediaTek, and Samsung’s in-house solutions. Recent reports suggest that MediaTek is actively engaging in negotiations with Samsung to expand its role within the Galaxy series, particularly in the budget-friendly segment.
Typically, Samsung’s Galaxy devices in the A3x range or lower feature MediaTek chips, with the exception of the Galaxy M53. MediaTek’s proposal aims to increase the incorporation of its chipsets in these affordable models. The company is offering discounted prices on its chipsets for budget phones, taking advantage of the fact that these devices have lower bills of materials. A reduction in chipset costs could positively impact overall production expenses for Samsung.
This move by MediaTek could also serve as leverage against Qualcomm, Samsung’s longstanding chipset supplier. If Qualcomm attempts to raise its chipset prices, Samsung could turn to MediaTek for more cost-effective alternatives. However, the current rumors do not mention the inclusion of MediaTek’s mid-range and flagship chipsets in Samsung’s lineup.
It’s worth noting that Samsung has recently reintroduced its Exynos processors in the high-end segment with the Galaxy S24 and S24+. Additionally, the company has an exclusivity agreement with Qualcomm for purchasing “for Galaxy” chipsets, which may pose a hurdle for incorporating a third supplier, especially for the pricier Galaxy lines.
As the negotiations unfold, it remains to be seen how Samsung will navigate its chipset partnerships to optimize performance and cost across its diverse range of smartphones. MediaTek’s competitive pricing incentives could potentially reshape the composition of Samsung’s budget-friendly Galaxy models, but the extent of this partnership is yet to be determined.
