Qualcomm Was Dependant On Samsung For 40 Percent Of Its Chipset Revenue In Q4 2023, Which May Be Bad News Going Forward

Samsung is regarded as a major smartphone chipset customer for Qualcomm, which is likely why the latter recently renewed a multi-year agreement with the Korean giant to use its Snapdragon silicon. However, it can become worrisome if one company depends on just one client to bring in 40 percent of the total revenue for a specific quarter, but according to the data shared for Q4 2023, Qualcomm appears to be too dependent on Samsung in this regard. We have witnessed on previous occasions that things can go from bad to worse if companies cannot diversify.

The situation can become dire if Samsung can improve its Exynos chipsets to the point where it does not require Qualcomm’s SoCs any longer

Data published by Canalys shows that for Q4 2023, Samsung brought in 40 percent of Qualcomm’s Snapdragon chipset revenue. Xiaomi secured second place by accounting for 17 percent of the total revenue, but there is a major disparity between the two companies, and it needs to be addressed. In comparison, MediaTek has a more balanced outlook, with Samsung bringing in a quarter of its total smartphone chipset revenue, followed by Xiaomi at 17 percent.

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This means that even if the Korean behemoth were to forego all of MediaTek’s chipset designs for this year, it would not affect the Taiwanese fabless semiconductor manufacturer as much as it would Qualcomm. Just recently, we reported that MediaTek has added nearly all Android phone makers to its portfolio, with the exception of Google, and it has around 15 chipset designs alone for the first quarter of 2024. For the time being, Samsung has little choice but to remain tethered to Qualcomm.

While its Exynos 2400 saw major improvements compared to the Exynos 2200, it continues to lag behind the Snapdragon 8 Gen 3, and the Snapdragon 8 Gen 4 might likely be a better option compared to the