Key Points:
- Expected price hike for Galaxy S25 due to higher Snapdragon 8 Gen 4 costs.
- Low 3nm chip production yield at Samsung Foundry might push prices up further.
- Exynos 2500 may be used outside the U.S., while Snapdragon 8 Gen 4 will power the Galaxy S25 Ultra globally.
Samsung’s upcoming Galaxy S25 series might come with a higher price tag, especially if Samsung Foundry struggles to improve its production of 3nm chips. According to reliable analyst Ming-Chi Kuo, the price of the Qualcomm Snapdragon 8 Gen 4 processor could rise by 25% to 30%, which might lead to a similar increase in the cost of the Galaxy S25 series. Currently, the Snapdragon 8 Gen 3 processor is priced between $190 and $200, but this could jump to as much as $260 with the next generation.
The root of this potential price hike lies in Samsung Foundry’s current challenges with producing 3nm chips. Yields are low, meaning they aren’t able to produce enough usable chips from each manufacturing run. This issue is crucial because it directly impacts production costs. If Samsung Foundry doesn’t improve its yields, the cost to produce each chip will remain high, which will likely be passed on to consumers in the form of more expensive devices.
Samsung might continue its strategy of using different processors in different markets. For example, the Galaxy S25 and S25+ might come with the Exynos 2500 chipset outside of the U.S., Canada, and China, while these countries, along with all Galaxy S25 Ultra models, would use the Snapdragon 8 Gen 4.
In the first quarter of this year, Samsung Foundry’s yield for 3nm production was in the single digits, which rose to 20% in the second quarter. However, they need to reach a 60% yield for mass production. Without this improvement, Samsung could be forced to significantly raise the price of the Galaxy S25 series by as much as 30% to cover the higher costs.
