According to well-known tipster Digital Chat Station, major smartphone companies such as Xiaomi, OnePlus, and Realme, along with their sub-brands like Redmi and iQOO, are reportedly thinking about moving away from Qualcomm’s high-end Snapdragon 8 Elite chipset for their flagship models next year.
Cost Factors at Play
This change is mainly due to the rising expenses related to the advanced manufacturing techniques and technology improvements needed for these powerful chips. The Snapdragon 8 Elite series, famous for its top-notch performance, has been the driving force behind this year's most luxurious smartphones available. However, the growing complexity of these processors, along with the shift to more advanced manufacturing nodes like TSMC’s N3P and N2, will considerably increase the costs involved.
Exploring Alternatives
In light of this, these phone makers are examining other chip options to keep their products affordable and profitable. Qualcomm has introduced a more cost-effective alternative since last year, the Snapdragon 8s Gen 3 (SM8635), and is anticipated to launch its successor, the SM8735, soon. In the past, brands have chosen flagship chips such as the 8 Gen 2 + 8 Gen 3 or 8 Gen 3 + 8 Elite for their dual flagship models. However, they may switch to a new strategy that utilizes a dual-chip arrangement, pairing a cheaper chipset like the Snapdragon SM8835 (potentially the 8s Elite 2) with the flagship Snapdragon 8 Elite 2.
Broader Consumer Appeal
This plan would allow them to provide two levels of flagship devices, appealing to a wider range of customers. For instance, Xiaomi’s Redmi K series, which is recognized for its combination of cost-effectiveness and high performance, might adopt this approach next year. The high-end Redmi K90 Pro could keep the Snapdragon 8 Elite 2, similar to this year’s K80 Pro, while the standard K90 could transition to the more budget-friendly Snapdragon SM8735/SM8835.
Overall, this strategic transformation illustrates the fine line between performance, cost, and what consumers want. Although the Snapdragon 8 Elite delivers unmatched processing power and advanced features, its high price can greatly influence the total cost of a smartphone. By thoughtfully choosing the appropriate chip for each model, manufacturers can refine their product lines and keep prices competitive without sacrificing performance.
