Samsung And Qualcomm Are Feeling Out About Working Together Again For Next-Gen Galaxy S7?

Jul 10, 2015

Samsung Electronics is examining again whether to work with Qualcomm again for development of premium Smartphones. Samsung Electronics applied its Exynos rather than Qualcomm’s Application Processor (AP) into Galaxy S6. There are a lot of interests circling around Samsung Electronics as it is confirmed that it is considering using Qualcomm’s Snapdragon for Galaxy S7 that will be shown to public in early 2016.

According to Etnews’s confirmation, Samsung Electronics named the project that will develop Galaxy S7 as ‘Jungfrau’ and it is currently developing two versions using both Exynos and Snapdragon. Exact version for each chip has not been confirmed yet.

Samsung Electronics is examining whether to apply Qualcomm’s Application Processor into Galaxy S7.  Above picture shows Qualcomm’s Snapdragon. <Samsung Electronics is examining whether to apply Qualcomm’s Application Processor into Galaxy S7. Above picture shows Qualcomm’s Snapdragon.>

It is not finalized whether Snapdragon will be applied into Galaxy S7 as it can be just that Samsung Electronics is testing its function. If Galaxy S7 with Snapdragon gets released, it is as Samsung Electronics and Qualcomm are working together after separating from each other a year ago.

Targeting certain products, Samsung Electronics is strategizing to apply Exynos for domestic models and Snapdragon for foreign models. It used Exynos for all Galaxy S6 in Korea and foreign countries to expand the use of Exynos. According to foreign press, it is predicting that Samsung Electronics will use Samsung’s first all-in-one chip (e-POP) called Exynos 7422 for Galaxy Note 5 that will be released in September.

Qualcomm fell into slump as its partnership with Samsung Electronics, which is one of its major customers, became shaky. Qualcomm’s business profit in last second quarter (January-March) was 1.3 billion dollars, which is 33% decrease from same time of last year. It also chose this year’s performance observation value lower than previous years, and others are saying that it needs to increase its sales in other business areas other than Smartphones such as IoT.

There is variety of interpretations coming out regarding this current situation of Samsung Electronics examining whether to apply Qualcomm’s chip into its Smartphones. First interpretation is whether foreign businesses still want to use Qualcomm’s chips. Famous for its communication chips, Qualcomm is still number 1 in AP market, and preference for Qualcomm’s chips in Smartphones cannot be excluded in mobile carriers in foreign countries.

There is also possibility that Qualcomm developed and suggested chips that have functions that Samsung want earlier than Exynos to Samsung Electronics. Samsung Electronics is rapidly developing premium Smartphones, and there are rumors that Galaxy S7 might get released by end of this year.

Some are saying there is a possibility that Samsung and Qualcomm found a point of agreement in negotiating prices. They are saying that by Qualcomm suggesting about implementing its chip that has competitive edge in price into Galaxy S7, and calculations from both companies came to an agreement. There is also an explanation that because Qualcomm is doing consignment production for some of its production of chips to Samsung Electronics, partnership between two companies became steady again.

“It is true that Samsung Electronics is developing product using Qualcomm’s chips, but it can be just for testing. Variety of causes probably went into effect if Galaxy S7 gets released with Qualcomm’s chips.” A person who has authenticity in Samsung Electronics’ interior said that everything is still up in the air and nothing is confirmed yet.

Staff Reporter An, Hochun | hcan@etnews.com

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