Qualcomm CEO reaffirms Samsung partnership with 70% flagship adoption

Qualcomm's chip partnership with Samsung is stronger than ever, with nearly three-quarters of the Korean giant's premium phones now running Snapdragon processors.

Qualcomm's chief executive said the company's relationship with Samsung remains solid, with about 70% of the Korean electronics maker's flagship smartphones now using Snapdragon processors, easing investor concerns about defection to rival chips.

"Our cooperation with Samsung remains strong," Cristiano Amon, chief executive officer of Qualcomm, said on the company's July 30 earnings call.

The 70% adoption rate among Samsung's flagship models marks a significant shift from the company's historical dual-sourcing strategy, where it split shipments between its own Exynos processors and Qualcomm's Snapdragon chips depending on the region. That regional divide has largely disappeared, culminating in Samsung's latest Galaxy lineup running Snapdragon silicon across watches, phones and smart glasses for the first time.

The reaffirmation removes a key overhang for Qualcomm shares. Samsung is Qualcomm's largest customer by volume, and any move toward Samsung's in-house Exynos chips would have threatened billions in annual revenue. Qualcomm's dominant position in smartphone processors — supplying most non-Apple flagship phones worldwide — now looks more secure.

Samsung's Shift From Exynos to Snapdragon

Samsung's chip history goes back further than most buyers realize. The original 2010 Galaxy S ran on a Samsung-designed chip called Hummingbird, and the Exynos name itself did not appear until the Galaxy S2 a year later, according to Android Authority.

Exynos then spent years as the weaker half of that dual-sourcing strategy, falling behind Snapdragon most visibly in 2020, when the Exynos 990 trailed on battery life and speed. By the Galaxy S23 launch, Samsung had quietly shifted to a single global Snapdragon chip for its top phones.

The new agreement extends beyond phones. It covers the Snapdragon 8 Elite Gen 5 for the Galaxy Z Fold8 and Z Fold8 Ultra, the Snapdragon Wear Elite platform for the Galaxy Watch9 and Watch Ultra2, and the Snapdragon AR1 Gen 1 for Samsung's new smart glasses, according to a press release distributed through Qualcomm. The Wear Elite chip marks the first time Samsung has used a Snapdragon platform to power a smartwatch.

Samsung MX Business president Won-joon Choi framed the goal as giving users a "consistent, premium Galaxy experience" across every device they own. Samsung is betting that owning the full hardware stack — phone, watch and glasses — running on one chip family will keep customers inside its ecosystem the way Apple keeps buyers tied to iPhone, Watch and AirPods.

What It Means for Qualcomm Investors

For Qualcomm, the Samsung relationship provides a stable revenue base as the company navigates a broader chip price increase taking effect Sept. 1. Qualcomm notified hardware partners that it will raise chip prices by a double-digit percentage for every product shipped after that date, according to a customer letter reviewed by Bloomberg. The hike reflects escalating foundry costs at TSMC and a memory supply crunch driven by AI data center demand.

Qualcomm shares have benefited from the Samsung commitment. The company's dominant position in smartphone processors — combined with expansion into automotive, PC and XR markets — supports a valuation that reflects its central role in the mobile chip supply chain.

This article is for informational purposes only and does not constitute investment advice.