Again in June, we informed you to
count on a value hike for the Galaxy S25 collection early subsequent yr. At the moment, dependable TF Worldwide analyst Ming-Chi Kuo stated {that a} 25% to 30% value hike for the Qualcomm Snapdragon 8 Gen 4 software processor (AP) may result in the same value hike for Samsung’s flagship cellphone collection for 2025. The
Snapdragon 8 Gen 3 AP is priced between $190-$$200 and after Kuo’s predicted value hike the chipset may carry a price ticket between $237.50 and $260.
Talking of Kuo, who is thought extra for his predictions associated to Apple, Samsung Foundry’s low-yield manufacturing on the 3nm node is a part of the explanation why we may see a 30% value hike for the
Galaxy S25 collection in 2025. Samsung may proceed to make use of the identical technique of equipping the
Galaxy S25 and
Galaxy S25+ with an Exynos chipset, on this case, the Exynos 2500 SoC, in all markets aside from the U.S., Canada, and China. In these international locations, the
Galaxy S25 and
Galaxy S25+ will sport the Snapdragon 8 Gen 4 as will all
Galaxy S25 Extremely models in each market.
In that state of affairs, the 30% value hike for the Galaxy 8 Gen 4 AP performs an necessary however restricted function. However what would occur if Samsung determined to eliminate the Exynos 2500 SoC, and all Galaxy S25 collection fashions have been powered by the Snapdragon 8 Gen 4 AP no matter market? You possibly can think about how a lot a 30% value hike for the chipset may affect pricing of the flagship line in that state of affairs. However that will not occur, will it?
Kuo now says it would. Stating that this would be the first yr that the Exynos software processor can be produced utilizing Samsung Foundry’s 3nm course of node, there’s a good probability that Samsung Foundry’s poor yields at that node will imply that there won’t be sufficient Exynos 2500 APs produced to fulfill Samsung’s calls for, In consequence, the Snapdragon 8 Gen 4 SoC may should be employed on each Galaxy S25 collection unit.
If so,
Samsung would have three choices to select from in terms of
Galaxy S25 pricing. Samsung may elevate the value of the telephones by the quantity of the chipset hike, say 30%, and have the general public eat the elevated price of the part. It may hold costs regular and Samsung would pay for the upper chip costs. Or it may elevate the value lower than the chip value hike and cut up the upper price of the part between prospects and the corporate.
Again in June, we questioned
whether or not Samsung Foundry may get its yield up in time for 3nm manufacturing of the decacore Exynos 2500 which may happen throughout the fourth quarter. Throughout the first quarter of this yr, Samsung Foundry had a single-digit yield for 3nm manufacturing. That rose to twenty% throughout Q2. 60% is required for mass manufacturing to happen. The stress is on Samsung Foundry if Samsung would not need to be pressured to lift the value of the
Galaxy S25 collection by as a lot as 30%.