Teardown Of New Samsung Galaxy Smartphone Suggests Deeper Loss For Qualcomm

[Ron Burgundy]

By Se Young Lee and Noel Randewich SEOUL/SAN FRANCISCO (Reuters) - Samsung Electronics Co Ltd used more of its own chips to power the new Galaxy S6 smartphone than it did for the predecessor S5, according to an early teardown report, in a blow to U.S. chip supplier Qualcomm Inc. 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, Ottawa-based consultancy Chipworks said in a web posting dated April 2. Samsung is counting on its new flagship Galaxy S6 and S6 edge phones to help revive earnings momentum after a disappointing 2014. The Galaxy S6 also comes with Samsung's Shannon modem chip, U.S. phone carrier AT&T said on its website. "With their market share going down they're under pressure to increase profit margins." The findings suggest a deeper loss of business for Qualcomm in the new generation of Samsung's flagship handsets than anticipated previously.

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