Samsung shifts to get better bargain.
Source, https://wccftech.com/samsung-to-gain-bargaining-power-over-qualcomm-by-using-mediatek-chipsets/
“If it increases its reliance on Qualcomm, it will lose its bargaining power in price negotiations. MediaTek is a good card that Samsung can use as leverage in negotiations with Qualcomm.”
Using Qualcomm chipsets increased Samsung’s smartphone production costs by 18.1 percent in 2023, up from 12.8 percent in 2022. Fortunately, the launch of the Exynos 2400 for the Galaxy S24 has helped reduce that expenditure, but as Samsung prepares to mass produce the Exynos 2500 for the Galaxy S25, it has run into low yields. Analyst Ming-Chi Kuo previously stated that this setback will force Samsung to delay its top-end chipset and exclusively use the Snapdragon 8 Gen 4 in the upcoming flagships. Luckily, the company could have an ace up its sleeve in the form of MediaTek.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.