The Galaxy Tab S10+ and Galaxy Tab S10 Ultra will reportedly enter mass production in August, with Samsung expected to use MediaTek’s Dimensity 9300+ for the first time in its flagship tablet family. As Qualcomm continues to raise its chipset prices, the Korean giant has to seek alternatives to reduce its component cost or continue bearing reduced profit margins on each sale. As it so happens, one report states that by teaming up with MediaTek, Samsung will gain increased bargaining power over Qualcomm, maybe to the extent that the latter provides its Snapdragon shipments at a lower price.
Samsung’s 18 percent smartphone manufacturing costs in 2023 were due to using Qualcomm chipsets alone, transitioning to MediaTek should lower that figure
As reported by The Korea Economic Daily, some industry observers believe that the Dimensity 9300+ is a significantly better option to use in the Galaxy Tab S10 lineup because it performs better than the Snapdragon 8 Gen 3 and is reportedly 10 percent cheaper than the latter. With the upcoming Snapdragon 8 Gen 4 and Dimensity 9400 expected to leverage TSMC’s 3nm ‘N3E’ process, it is a platinum-level opportunity for MediaTek to showcase its SoC’s capabilities and encourage Samsung to form a long-term partnership, with its flagship chipsets possibly transitioning to the firm’s premium handsets.
It was previously rumored that Samsung was testing an unnamed MediaTek chipset for its upcoming Galaxy S25 series, with updated information claiming that the silicon in question was the Dimensity 9400. A semiconductor source has stated that if Samsung continues to increase its dependency on Qualcomm, it will lose its position of power, and MediaTek is the ideal ally for Samsung if it wants to increase its bargaining leverage.
“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.
News Source: The Korea Economic Daily