Galaxy S25 May Cost More Unless 3nm Yields Improve

In June, we informed you to anticipate a price increase for the Galaxy S25 series early next year. At that time, the reliable TF International analyst Ming-Chi Kuo indicated that a price increase of 25% to 30% for the Qualcomm Snapdragon 8 Gen 4 application processor (AP) could result in a similar rise in price for Samsung’s flagship phone series in 2025.

Currently, the Snapdragon 8 Gen 3 AP is priced between $190 and $200; following Kuo’s projected price increase, the chipset could be priced between $237.50 and $260. Additionally, Kuo, who is primarily known for his Apple-related predictions, noted that Samsung Foundry’s low-yield production at the 3nm node is a contributing factor to the potential 30% price hike for the Galaxy S25 series in 2025.

Samsung may continue its strategy of equipping the Galaxy S25 and Galaxy S25+ with an Exynos chipset, specifically the Exynos 2500 SoC, in all regions except the U.S., Canada, and China. In those countries, the Galaxy S25 and Galaxy S25+ will feature the Snapdragon 8 Gen 4, as will all Galaxy S25 Ultra models across every market.

In this scenario, the 30% price increase for the Galaxy 8 Gen 4 AP plays a significant yet limited role. However, consider what would happen if Samsung chose to eliminate the Exynos 2500 SoC, resulting in all Galaxy S25 series models being powered exclusively by the Snapdragon 8 Gen 4 AP, regardless of the market.

You can imagine how a 30% increase in the chipset price could affect the pricing of the flagship line in that case. But is that likely to happen? Kuo now suggests it might. He notes that this will be the first year the Exynos application processor is manufactured using Samsung Foundry’s 3nm process node.

There is a strong possibility that Samsung Foundry’s low yields at this node will result in insufficient Exynos 2500 APs to meet Samsung’s requirements. Consequently, it may be necessary to use the Snapdragon 8 Gen 4 SoC in every Galaxy S25 series unit. If this occurs, Samsung would have three pricing options for the Galaxy S25.

Samsung could increase the phone prices by the full amount of the chipset hike, such as 30%, passing the additional cost onto consumers. Alternatively, it could maintain current prices, absorbing the higher chip costs itself. Lastly, Samsung could implement a smaller price increase, sharing the burden of the higher component cost between the company and its customers.

In June, we speculated on whether Samsung Foundry would be able to increase its yield in time for the 3nm production of the Deca-core Exynos 2500, which is expected to occur in the fourth quarter. In the first quarter of this year, Samsung Foundry reported a yield in the single digits for 3nm production, but this improved to 20% in Q2.

To achieve mass production, a yield of 60% is necessary. Samsung Foundry is under pressure if the company wants to avoid a potential price increase of up to 30% for the Galaxy S25 series.