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Speculation: MediaTek Allegedly Offering Incentives to Samsung for Increased Chip Usage

Navigating the Dynamics of Chip Supply in the Mobile Industry

Samsung employs a diverse array of chipset providers – Qualcomm, MediaTek, and its own brand – in varying proportions across its phone models. According to sources, MediaTek is reportedly in discussions to expand its presence within the Galaxy series, enticing Samsung with preferential pricing strategies.

Specifically targeting Samsung’s budget-friendly models, MediaTek aims to broaden the adoption of its chips. Apart from the Galaxy M53, most MediaTek-powered Galaxy devices fall within the A3x range or below.

Given that budget phones typically operate with constrained material costs, a reduction in chipset pricing – a significant expense – presents an appealing proposition. Moreover, such discounts could serve as a bargaining chip against potential price hikes from Qualcomm.

Speculation: MediaTek Allegedly Offering Incentives to Samsung for Increased Chip Usage

While MediaTek also offers competitive mid-range and flagship chipsets, there’s no indication of their inclusion in the negotiations.

Samsung recently reintroduced its Exynos chips in the high-end segment with the Galaxy S24 and S24+, and holds an extensive exclusivity agreement with Qualcomm for “for Galaxy” chipset purchases. Consequently, the addition of a third supplier for premium Galaxy lines might not align with Samsung’s current strategies.

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