Wednesday February 20, Samsung (NASDAQOTH: SSNLF) unveiled a host of new flagship smartphones. For most of the premium market, the company showcased its main Galaxy S10 family of devices, consisting of the Galaxy S10e, Galaxy S10, and Galaxy S10 +, in ascending order of price, size, and features.
The company also introduced the Galaxy S10 5G, an even higher-end smartphone with 5G connectivity, an even larger screen and a rear-facing 3D sensing camera. And Samsung announced the Galaxy Fold, the company’s first foldable smartphone.
With this release of new devices, three of Samsung’s component suppliers are expected to benefit: Qualcomm (NASDAQ: QCOM), Taiwan Semiconductor Manufacturing Company (NYSE: TSM), and Broadcom (NASDAQ: AVGO).
Qualcomm’s 5G boost
As is typically the case, Qualcomm’s latest flagship Snapdragon app processor – in this case, the Snapdragon 855 – supplies some versions of these new devices. According to AnandTech, Samsung uses the Snapdragon 855 for Galaxy S10 devices sold in North America and Latin America, China and Japan. In the rest of the world, Samsung uses its Exynos 9820 application processor.
Additionally, AnandTech says the Galaxy Fold exclusively uses Qualcomm’s Snapdragon 855.
I also wouldn’t be surprised if the Galaxy S10 5G – which, admittedly, will likely be a relatively specialized device – also uses Qualcomm’s Snapdragon X50 5G modem.
Qualcomm already has a strong position in Samsung’s Galaxy S and Note series smartphones, so the fact that Samsung heavily uses the Snapdragon 855 in its lineup isn’t necessarily a game-changer. However, it’s still good to see that Qualcomm continues to occupy a solid position in Samsung’s flagship lineup.
TSMC’s great victory
In recent years, Qualcomm has relied exclusively on Samsung to manufacture its flagship Snapdragon application processors. However, TSMC won the contract to build Qualcomm’s latest Snapdragon 855 application processors using the latest 7 nanometer technology.
Qualcomm is the largest merchant supplier of mobile application processors and dominates the merchant market for high-end mobile application processors with its Snapdragon 800 series devices. Since Samsung’s latest smartphones use the Snapdragon 855 for variants sold in key regions like North America, TSMC is expected to benefit financially as the Galaxy S10 product cycle progresses.
Broadcom Wi-Fi 6
Broadcom, which makes a pretty dime selling Wi-Fi / Bluetooth connectivity chips in high-end smartphones, has announced that Samsung is using its latest BCM4375 chip in the latter’s latest Galaxy S10 series smartphones.
While this is not new business for Broadcom – Samsung has historically used Broadcom’s latest Wi-Fi chips in its flagship smartphones – it also appears to be a validation of the quality and capabilities of high-end smartphone connectivity chips. from Broadcom.
It’s also worth noting that Broadcom’s largest mobile Wi-Fi chip client, Apple (NASDAQ: AAPL), is likely to adopt the BCM4375 or an Apple-specific derivative of the chip in its iPhones to be launched later this year. If the BCM4375 is priced higher than Broadcom’s previous flagship Wi-Fi chips (which wouldn’t be surprising, as Broadcom has often enjoyed growth in dollar content in flagship smartphones as technology has advanced ), then Samsung’s adoption should definitely help and an even bigger boost should come once Apple embraces the chips.
The point, however, is that Broadcom’s strong position in high-end mobile Wi-Fi chips continues to persist, which is good for Broadcom’s wireless business and the company’s shareholders.
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