Galaxy look reveals Qualcomm’s loss

Galaxy 6A quick look under the bonnet of the new Galaxy s6 has shown how far Samsung has moved away from its old chum Qualcomm

Samsung used more of its own chips to power the new Galaxy S6 smartphone than it did for the predecessor S5

Samsung is not only using its own Exynos mobile processor, as had been widely reported, but also decided to rely on its in-house semiconductor business to source other parts, including the modem and power management integrated circuit chips.

According to Ottawa-based consultancy Chipworks, who conducted an analysis of the Galaxy S6 eating its own dog food will mean stronger sales of system chips such as its Exynos processor that could help boost earnings

The Galaxy S6 also comes with Samsung’s Shannon modem chip, it what is starting to look like an attempt to use all-Samsung silicon as a way to increase profit margins.

All this is bad news for Qualcomm which had been expected to be a key player on the new generation of Samsung’s flagship handsets.

Qualcomm said in January that a key customer declined to use its new Snapdragon processor in an upcoming flagship phone presumed to be Samsung’s Galaxy S6. But it had been unclear whether Samsung would drop Qualcomm’s modem chips as well.

Qualcomm is the industry leader in LTE, the most advanced modem technology, but Samsung, Intel, MediaTek and others have developing their own products.