This week, Akash Palkhiwala, CFO of Qualcomm, ended up confirming that Samsung will not be using Exynos series chips in the Galaxy S23. At an investor meeting, Akash said (between the lines) that Snapdragon will have a “global slice” of South Korea’s next premium smartphone.
Responding to an analyst at AllianceBernstein, Qualcomm’s CFO said that “our share will go from 75% on the Galaxy S22 to a global share on the Galaxy S23”. It has been rumored for some time that Samsung will overhaul the Exynos division — not using your own chips for a while. The South Korean SoCs garner criticism for their poor performance and heating issues.
Qualcomm will provide SoCs for all Galaxy S23
As rumored and now indicated by Akash Palkhiwala, the next Galaxy S smartphone will be released in March. O S23 presentation event will happen at the end of February, two months from now — it seems like yesterday we were waiting for the Galaxy S22 to arrive.
Qualcomm’s CFO made these statements when AllianceBernstein analyst Stacy Rasgon asked what the company expected from the first quarter of 2023 — warning: lots of money.
Qualcomm predicts that the Snapdragon 8 Gen 2 exclusivity (SoC expected to be announced on the 15th of this month) on the Galaxy S23 will leverage Q1 2023 results. In addition, Akash expects production to be reflected in the following quarter as well.
The two companies, Qualcomm and Samsung, have extended the supply contract to 2030 and, in the words of CEO Cristiano Amon, expanding the possibility of a renewal.
Samsung will fix Exynos problems
In July, analyst Ming-Chi Kuo had already stated that Samsung would only use Snapdragon chips in the Galaxy S23. According to Kuo, the South Korean is disappointed with the performance of the Exynos 2200 on the Galaxy S22 when compared to the versions that use the Snapdragon 8 Gen 1. To make matters worse, the Exynos 2300 is not delivering the expected performance.
To solve the situation, Samsung will “put the house in order”. The division responsible for Exynos will spend a while just developing a new chip (a rumor indicates that it will take two to three years of reformulation) exclusive to the Galaxy. Until then, Samsung will rely on MediaTek and Qualcomm processors in its smartphones.
After this period of reformulation, with everything going well, the Galaxy S line will be the first to debut this exclusivity of Exynos. Like Apple and Google, Samsung wants to use only its own SoCs in its smartphones. Developing processors designed for an exclusive model, and not for other smartphones, is more efficient than producing “generalist” chips — those that can be sold to third parties.
In Asia, Samsung supplies Exynos for incoming Motorolas and Vivos. The Galaxy S series is sold with Snapdragon or the house chip, depending on the region. In the United States, the Galaxy S22 uses Qualcomm’s SoCs to perform best with the country’s 5G network. This year, the South Korean finally brought the top of the line with Snapdragon to Brazil.
With information: PhoneArena and Fool