Samsung has reduced the use of its processor chips for its own smartphones due to low-profit margin, Report.
The world’s No.1 smartphone brand is set to supply its processor chips “Exynos” to Chinese smartphone brands like Oppo, Vivo, and Xiaomi in next year. The South Korean company is said to give its Exynos chips to some Chinese brands for budget smartphones. Samsung makes the competition tougher for Qualcomm which offers its Snapdragon processor chips to various brands in China and around the world. The other chip maker company called MediaTek makes this competition tougher.
The South Korean news site said in a report that the company is set to begin with the entry-level models initially, though it may offer its SoCs for third-party premium smartphones after gaining some identification in the market.
Why Samsung reduced its Exynos Chips in its smartphone?
The company has reduced the supply of its Exynos processor due to a low-profit margin. It still offers an Exynos 990 processor on its premium phones in India. However, it decided not to use the top-end processor for its Galaxy S20 models in the Korean market and preferred Qualcomm Snapdragon 865 instead.
Samsung previously supplied their Exynos 880 and Exynos 980 processors to Vivo. The company also launching the Exynos 1080 processor that be a part of Vivo X60. The Exynos chips are not much powerful as compared with Qualcomm Snapdragon in the long term usage.
According to Counterpoint Research, Qualcomm led the market by 29% in the Q2 in 2020. The share dropped 3% compared to last year. On the other hand MediaTek occupied second place with 26%. The Samsung faced the tough fight with Huawei and occupied forth place with 13% share.