A major reversal in the telecommunications market triggered by Samsung Electronics’ ‘win-win’ marketing: Galaxy and Exynos run together > News

Samsung Electronics’ ‘Gratitude Festival with the People’, which started on the 8th, instantly changed the topography of the telecommunications market. This event, which returns 20% of the purchase amount as a digital Onnuri gift certificate, provided a strong incentive of a substantial ‘perceived price reduction’ to buyers of major terminals, including the Galaxy S26 series. Immediately after the start of the event, the number of new openings in the four days prior increased by more than 30% compared to the previous day, and agencies and stores are busy to the point where it is meaningless to say that it is the off-season. In particular, even though telecommunication companies have reduced some of their own public subsidies, it is clear that consumers are turning to large telecommunication companies again as manufacturers' refund benefits are more attractive than offset.

Other beneficiaries of this promotion are the three telecommunication companies. The weight of subscriber migration, which had been focused on budget phones, is now tilting back towards the three mobile communication companies, achieving ‘two birds with one stone’ by reducing the burden of marketing costs and maximizing the effect of attracting subscribers. Telecommunications companies are experiencing a natural influx of customers thanks to promotions in which manufacturers cover all financial resources without excessive competition. This was an important turning point that gave telecommunications companies, who had to catch two birds with one stone: securing subscribers and protecting profitability, a breath of fresh air in their management strategies for the second half of the year. As a result, Samsung and the telecommunications company are evaluated as having succeeded in establishing a model of coexistence and revitalizing the mobile ecosystem in the stagnant domestic market.

Behind the strong mobile phone sales, there is a hidden achievement in the semiconductor field: the revival of ‘Exynos’ by Samsung Electronics’ System LSI Division. The Exynos 2600 installed in the Galaxy S26 series once again proved its presence in the premium smartphone market, serving as a driving force in recording 7% of the global market share in the first quarter of this year. This goes beyond a simple increase in market share, contributing to reducing costs and improving profitability of the MX division by reducing dependence on external chipsets such as Qualcomm and securing competitiveness in in-house design. In terms of performance, AI processing capabilities have improved dramatically compared to the previous generation, and Exynos has now become the core engine of Samsung Electronics' mobile strategy and a strategic point to increase the operation rate of the foundry division.

Thanks to this market response, Samsung Electronics is speeding up its strategy for the upcoming second half of the year. At the global strategy meeting starting on the 16th, in-depth discussions will continue on how to protect profitability and take the lead in the AI ​​era amidst the rapidly changing global external environment and rising cost pressure. In particular, the supply strategy of next-generation memory semiconductors such as HBM4 and the early stabilization of the foundry 2-nano process are key tasks that will determine Samsung's future. In addition, by providing customized chip solutions ranging from servers to on-device in preparation for the era of agentic AI, we plan to accelerate our transformation from a simple smartphone manufacturer to a platform company leading AI technology.