Samsung to only use Qualcomm’s AP for Galaxy S23 series

Samsung Electronics Co. is poised to release the Galaxy S23 series smartphones in mid-February, those familiar with the development told The Korea Economic Daily. 

And the entire line of Galaxy S23 series will be equipped with US chipmaker Qualcomm Inc.'s next-generation Snapdragon 8 Gen 2 mobile application processors (AP). 

Qualcomm’s CFO Akash Palkhiwala confirmed the news during the latest earnings call, stating that Snapdragon chips would get a “global share” of the Galaxy S23 market – up from a 75% share with the previous line. 

In the same earnings call, Qualcomm CEO Cristiano Amon said, “In handsets, we entered into a new multiyear agreement with Samsung, expanding the use of Snapdragon platforms for future premium Samsung Galaxy products globally.”

Application processors or APs serve as the brain of electronic devices. 

Up to now, Samsung Electronics used different APs for the same line of Galaxy S series mobile phones in different regions of the world. 

For example, the Galaxy S22 smartphones available in the United States, China, and India were equipped with Snapdragon 8 Gen 1, while those sold in the European Union were made with Exynos 2200, developed by Samsung's System LSI department. 

Experts say the decision to use Qualcomm’s Snapdragon in all smartphones in the upcoming series is meant to quell any controversy pertaining to quality. 

TARGETING PREMIUM MARKET

Industry insiders say the upcoming line of Galaxy smartphones being equipped with top-notch hardware reflects the resolve of the company’s senior management to broaden its presence in the premium market.  

Roh Tae-moon, president and head of MX Business at Samsung Electronics, has previously expounded on the desire to do so. 

According to Counterpoint, a tech market research firm, worldwide shipments of smartphones fell 12% to 301 million devices in the third quarter of this year from the same period last year.

But sales of higher-end smartphones rose by more than 10% over the same period, reflecting differing consumer behavior based on spending power. 

Apple Inc. is the industry leader in premium smartphones. 

The US mobile phone maker’s shipment of higher-end devices accounts for 57% of the premium market while Samsung Electronics' stands at only 19%.

While Samsung Electronics enjoyed brisk sales of the foldable Galaxy Z series, experts say Galaxy S sales are also important for expanding market share. 

MARKET PROSPECTS

The MX Business department led by Roh is forecast to continue its robust ties with Qualcomm to deliver hardware competitiveness. 

Apple, which already enjoys a competitive edge in software, has been fortifying its hardware in the areas of display and semiconductors. 

For instance, Apple designed a series of systems on a chip and systems in package processors, mainly using ARM architecture.

Write to Jeong-Soo Hwang at hjs@hankyung.com
Jee Abbey Lee edited this article.