Samsung and Apple are abandoning Qualcomm: what’s the reason?

Samsung and Apple, the largest smartphone makers, have begun to actively reduce their dependence on Qualcomm. And the reason for this is not only technological, but financial as well.

Qualcomm has been a key supplier of smartphone components for decades. Today, however, the two global giants are betting on their own solutions, even though their chips are still inferior. So why are they taking this risk?

Apple and Samsung are betting on their chips

Samsung has long been working to replace Snapdragon processors with its Exynos chips. Previously, the company used regionalization, with some markets getting Exynos devices and others getting Snapdragon devices. But with the Galaxy S23 lineup, everything changed – all devices worldwide came only with Snapdragon. This decision was a result of the poor performance of Exynos and user demand.

Though Samsung isn’t abandoning its strategy. The Galaxy S24 got regional separation again, and the rumored Galaxy S25 will once again use only Snapdragon. However, this could change by 2026. The company is developing the Exynos 2600, a new 2nm chipset that is expected to form the basis of the Galaxy S26. Due to production difficulties, Samsung will probably again limit itself to the European market and a few other regions, but the trend is clear: the company is looking to go all-in on its own chips.

Apple has followed a similar path. The iPhone 16e model already has its first in-house-made modem, the C1. The company has been developing it for several years and has finally unveiled a full-fledged alternative to Qualcomm’s solutions. According to insider reports, in 2025 Apple’s modem will appear in the base versions of iPhone 17, including the new iPhone 17 Air model. Eventually, Apple plans to use its own modems in all of its devices.

Apple’s modem will also be available in the iPhone 17, including the new iPhone 17 Air.

Qualcomm is an expensive partner

One of the main reasons Apple and Samsung are leaving Qualcomm is the high cost of components. According to analysts, Samsung lost about $400 million due to the use of Snapdragon chips in all Galaxy S25s. Apple is also unhappy with the high license fees it has to pay for Qualcomm’s modems.

Although Qualcomm’s solutions are still some of the best on the market, manufacturers are increasingly coming to the realization that for most users, the difference in performance between chips is no longer as important. Today’s smartphones have become so powerful that the average consumer won’t notice which modem or processor is inside.

Qualcomm’s prospects are in question

Despite its strong position, Qualcomm’s future doesn’t look so clear. The company is losing key partners – first Samsung, now Apple. The loss of share in the new iPhone 17 models has already been confirmed, with Apple abandoning third-party solutions in favor of its own. And while a complete abandonment of Qualcomm won’t happen overnight, the trend is already set.

If the company’s biggest customers are gradually leaving, its dominance of the smartphone industry could end much sooner than it seems. But perhaps it will open the door to new players and launch a new wave of tech competition.

The article Samsung and Apple abandon Qualcomm: What’s the reason?” was first published on ITZine.ru.