Ever since rumors surfaced about Samsung using the Snapdragon 8 Elite in the Galaxy S25 series, a possible price hike seemed inevitable. Now, a new report claims that the Galaxy S25 Ultra will be more expensive than expected in some regions.
The Samsung Galaxy S25 Ultra could be more expensive than its predecessor
Notably, Samsung’s “Ultra” flagships have used Snapdragon chips worldwide for years. So, a potential price increase wouldn’t have anything to do with the Exynos 2500 chip. According to Chinese tipster Instant Digital, the Galaxy S25 Ultra costs about $110 more to manufacture than the Galaxy S24 Ultra. Taking that into account, the source points to an “inevitable” price hike.
There are no estimates yet on how expensive the brand’s next most premium smartphone could be. Recall that the Galaxy S24 Ultra already had a launch price of $100 more than its predecessor in the United States. So, Samsung needs to be careful about choosing a price tag that doesn’t end up alienating fans.
The Snapdragon 8 Elite chip raises production costs
According to industry insiders, the price of the Snapdragon 8 Elite sits at around $200 per unit. Qualcomm has reportedly increased the price by 20% compared to last year’s Snapdragon 8 Gen 3. The company wants to make its investment in the powerful Oryon cores for mobile devices profitable.
Considering the price increase, Samsung had two options. The South Korean giant could absorb the entire extra cost of the new chip—reducing its profit margins—or pass the cost on to the user. It appears that the company will not be generous, and the user will pay the additional cost.
Prices for the vanilla and Plus models might also be higher
The tipster specifically mentions a more expensive production price for the Galaxy S25 Ultra. However, it would not be a surprise if the vanilla and Plus models also come with a higher price tag. The low yield rate issues on Samsung Foundry’s 3nm wafers forced the company to use Snapdragon hardware across the entire series worldwide.
Using its own Exynos chips was much more cost-effective for Samsung. That’s why the company was rushing until the last minute to try to implement the Exynos 2500. However, fixing the Samsung Foundry situation will take longer than it has available. The Galaxy S25 series could arrive on January 22, 2025, so a decision had to be made quickly.
It’s not known exactly how much it cost Samsung to produce the Exynos 2500 chip. However, the bill of materials for the Pixel 9 Pro can serve as a reference. According to the report, the Tensor G4 chip costs Google about $80. It’s quite possible that the Exynos 2500 is slightly more expensive to produce than the Tensor G4. Regardless, it would still be significantly less expensive than utilizing Qualcomm’s most recent flagship mobile SoC.
