Key Takeaways
1. Qualcomm has a history of increasing prices for its new products, with the Snapdragon 8 Elite Gen 5 potentially reaching $280.
2. Pricing can vary among OEMs based on agreements and order sizes, with larger orders likely reducing costs.
3. The price rise for the Snapdragon 8 Elite Gen 5 is partly due to a 24% increase in costs for the N3P node from TSMC.
4. Future Snapdragon chips, like the 8 Elite Gen 6, are expected to exceed $300, impacting flagship smartphone pricing.
5. Samsung is producing 2 nm SoCs for Qualcomm, which could provide a cost-effective alternative to TSMC’s wafers if prices rise further.
Qualcomm has a history of raising the prices for its newest products. The previous Snapdragon 8 Elite, for instance, was at least 10% higher in cost compared to the 8 Gen 3 for manufacturers. The newly launched Snapdragon 8 Elite Gen 5 is said to potentially reach up to $280.
Pricing Variations
This unit price comes from industry predictions, and it’s important to understand that the costs can differ among OEMs based on their agreements with Qualcomm. Additionally, the order sizes can impact the price per unit, with larger orders likely reducing costs. However, this estimate does not take into account the royalty fees that may apply.
Trends in Pricing
What’s more significant is the increasing trend in prices for Qualcomm’s flagship SoCs. The price increase for the Snapdragon 8 Elite Gen 5 can’t be solely blamed on Qualcomm, as the chip manufacturer has allegedly paid 24% more for the N3P node from TSMC. Reports indicated that wafer prices rose well before any official announcements were made.
Future Expectations
Given this upward trend, it’s reasonable to expect that the upcoming Snapdragon 8 Elite Gen 6 will exceed $300 in price. Such a steep price would inevitably cause flagship smartphones to become even more expensive, making it challenging for manufacturers to offer budget-friendly flagship options (like the OnePlus 13T priced at $509.38 on TradingShenzhen).
On a positive note, Samsung is said to have started producing 2 nm SoCs for Qualcomm, with early samples reported as sent for testing. If all goes well, this could provide Qualcomm with a viable alternative if TSMC’s 2 nm wafers become unreasonably expensive.
@yabhishekhd on X
Source:
Link
Leave a Reply