Back in June, we told you to expect a price hike for the Galaxy S25 series early next year. At that time, reliable TF International analyst Ming-Chi Kuo said that a 25% to 30% price hike for the Qualcomm Snapdragon 8 Gen 4 application processor (AP) could lead to a similar price hike for Samsung’s flagship phone series for 2025. The Snapdragon 8 Gen 3 AP is priced between $190-$$200 and after Kuo’s predicted price hike the chipset could carry a price tagΒ between $237.50 and $260.
Speaking of Kuo, who is known more for his predictions related to Apple, Samsung Foundry’s low-yield production at the 3nm node is part of the reason why we could see a 30% price hike for the Galaxy S25 series in 2025. Samsung could continue to use the same strategy of equipping the Galaxy S25 and Galaxy S25+ with an Exynos chipset, in this case, the Exynos 2500 SoC, in all markets except for the U.S., Canada, and China. In those countries, the Galaxy S25 and Galaxy S25+ will sport the Snapdragon 8 Gen 4 as will all Galaxy S25 Ultra units in every market.
In that scenario, the 30% price hike for the Galaxy 8 Gen 4 AP plays an important but limited role. But what would happen if Samsung decided to do away with the Exynos 2500 SoC, and all Galaxy S25 series models were powered by the Snapdragon 8 Gen 4 AP regardless of market? You can imagine how much a 30% price hike for the chipset might impact pricing of the flagship line in that scenario. But that won’t happen, will it?
Kuo now says it might. Pointing out that this will be the first year that the Exynos application processor will be produced using Samsung Foundry’s 3nm process node, there is a good chance that Samsung Foundry’s poor yields at that node will mean that there will not be enough Exynos 2500 APs produced to satisfy Samsung’s demands, As a result, the Snapdragon 8 Gen 4 SoC might need to be employed on every Galaxy S25 series unit.
If this is the case, Samsung would have three options to choose from when it comes to Galaxy S25 pricing. Samsung could raise the price of the phones by the amount of the chipset hike, say 30%, and have the public eat the increased cost of the component. It could keep prices steady and Samsung would pay for the higher chip prices. Or it could raise the price less than the chip price hike and split the higher cost of the component between customers and the company.
Back in June, we wondered whether Samsung Foundry could get its yield up in time for 3nm production of the decacore Exynos 2500 which could take place during the fourth quarter. During the first quarter of this year, Samsung Foundry had a single-digit yield for 3nm production. That rose to 20% during Q2. 60% is needed for mass production to take place. The pressure is on Samsung Foundry if Samsung doesn’t want to be forced to raise the price of the Galaxy S25 series by as much as 30%.
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