Samsung Galaxy S25 Takes a Bold Move to Dominate the AI Phone Market, Using Only Snapdragon Chips While Foldables Remain with Exynos

Samsung Electronics is making a decisive move to assert its dominance in the AI phone market by exclusively using Qualcomm’s Snapdragon processors for its upcoming Galaxy S25 series. This marks a shift from the strategy used for the Galaxy S24, which employed both Samsung’s own Exynos and Qualcomm’s Snapdragon chips. Industry experts view this as a strategic play by Samsung to outpace competitors like Apple and major Chinese brands by focusing on top-tier performance.

Exclusive Use of Qualcomm’s Snapdragon 8 Gen 4

The Galaxy S25, set for release in January next year, will be powered solely by Qualcomm’s Snapdragon 8 Gen 4 chip. This decision marks a departure from Samsung’s past practice of using a mix of Snapdragon and Exynos processors in its flagship devices. The Snapdragon 8 Gen 4 is expected to offer a 30% improvement in core performance, especially in areas like AI functions and graphics processing. This exclusive partnership with Qualcomm aligns with Samsung’s goal to use only the highest-performance components, ensuring the Galaxy S25 sets a new standard in the smartphone industry.

Shifting Focus: Exynos Chips in Foldable Phones

While Samsung’s Exynos 2500 processor, developed by its System LSI Division and produced by the Foundry Division, will not feature in the Galaxy S25, it isn’t being sidelined entirely. Instead, Samsung plans to use the Exynos 2500 in a foldable phone slated for release in the second half of next year. This shift indicates that Samsung is focusing its in-house processor efforts on niche markets, like foldables, where competition is less intense, and the unique features of Exynos chips work better.

The Brain Behind the Power: Application Processors

Application processors (APs) are critical in modern smartphones, acting as the ‘brain’ responsible for AI capabilities, graphics, and overall device performance. Samsung has historically balanced its AP use between Qualcomm’s Snapdragon and its own Exynos to manage costs and develop its AP design and production capabilities. However, the strategic shift to exclusively using Snapdragon for the Galaxy S25 series underscores a focus on stability and performance, potentially to ensure a more seamless user experience and to solidify its standing against Apple in the premium phone market.

Galaxy S25: A Move to Overpower Apple

Samsung’s decision to exclusively use Qualcomm chips in the Galaxy S25 is likely a direct challenge to Apple, which dominates the high-end smartphone market. In terms of shipment volume, Samsung leads the global market, holding a 20% share compared to Apple’s 16% as of the second quarter. However, in terms of sales revenue, Samsung lags far behind, capturing only 16% compared to Apple’s 50%. This discrepancy is largely due to Apple’s dominance in the premium sector, which commands higher prices and margins.

The Galaxy S25 comes with the latest Snapdragon 8 Gen 4, which is Samsung’s attempt to close this gap. By focusing on maximizing the device’s performance and positioning it as a leader in AI capabilities, Samsung aims to attract more premium market customers and improve its standing against Apple.

Qualcomm’s Custom Chip for Galaxy S25 Ultra

To strengthen its tie with Samsung, Qualcomm has launched a special version of the Snapdragon 8 Gen 4, called the “Snapdragon 8 Gen 4 for Galaxy.” This custom chip is tuned for the Galaxy S25 Ultra and will be made using TSMC’s advanced 3-nanometer tech. Reports say this chip will match the power of Apple’s A18, which should come with the iPhone 16. This move by Qualcomm not only boosts the Galaxy S25’s features but also helps it stand out in the AI and high-performance phone market.

Exynos 2500: A Focus on Stability and Yield

While the Exynos 2500 won’t appear in the Galaxy S25, Samsung isn’t giving up on its chip work. Instead, the focus has shifted to making the Exynos 2500 better. Samsung’s Device Solutions (DS) Division is working to improve the chip-making process below 3 nanometers to make its chips more competitive. The Exynos 2500 is likely to show up in Samsung’s next foldable phones, the Galaxy Fold and Flip 7, expected to come out in August next year.

Exynos and Foldable: A Strategic Play

By keeping the Exynos 2500 for foldable phones, Samsung can tap into the unique look and features of these devices, which attract a different part of the market. This lets Samsung improve its chip tech while staying strong with Qualcomm’s Snapdragon in the high-end segment. The foldable phone market is growing, and Samsung’s lead in this area gives it a key spot to show off the power of its Exynos chips without going head-to-head with the top-end models that use Snapdragon.

Samsung’s Dual Strategy for Market Dominance

Samsung’s plan with the Galaxy S25 shows a dual method: using Qualcomm’s Snapdragon chips to boost its top line while still working on its Exynos chips for special uses. This not only helps Samsung keep its costs down but also lets it control its supply chain and future tech growth.

By focusing on high-speed parts and optimizing its devices for AI, Samsung wants to secure its lead in the phone market, as the need for AI-driven features keeps growing. The Galaxy S25, with its Snapdragon 8 Gen 4 chip, will be a key device in Samsung’s plan to outdo its rivals and gain a larger share of the top-end market.

Looking Forward: Samsung’s Competitive Edge

With the mobile phone market becoming more focused on AI and performance, Samsung’s plan to use only the best parts in its top devices shows its clear aim to lead. The exclusive deal with Qualcomm for the Galaxy S25, along with the ongoing work on Exynos chips for foldable phones, puts Samsung in a good spot to target both the mainstream and niche markets.

As Samsung gets ready to launch the Galaxy S25 in January, the tech world will be keen to see how this plan works out. By focusing on performance, reliability, and AI, Samsung is not just keeping up with trends but is also steering the future of the phone market. Whether this move will help Samsung outpace Apple and other rivals is still unknown, but it’s clear that the Galaxy S25 will be key in the race for AI phone dominance.