Qualcomm is gearing up for a significant shift with the forthcoming Snapdragon 8 Gen 4, slated for an official reveal in October. This new SoC will incorporate in-house CPU designs featuring custom Oryon cores. However, this move towards greater autonomy may come with a price for smartphone producers.
Advanced Technology and Higher Costs
Much like Apple’s M-series chips, the Snapdragon 8 Gen 4 is speculated to use TSMC’s cutting-edge 3nm process (N3E). This will mark Qualcomm’s first utilization of 3nm technology for its SoCs, promising enhanced performance and efficiency. However, this advancement will result in increased production expenses.
According to Weibo tipster Digital Chat Station, the wafer price for the Snapdragon 8 Gen 4 has escalated, which will directly influence the final cost of the SoC.
Impact on Market Pricing
This price surge isn't entirely unexpected. Qualcomm had previously hinted at a higher price point for the Snapdragon 8 Gen 4 due to the integration of Oryon cores.
The increased cost could trigger a domino effect in the smartphone market. With a more expensive chip, manufacturers might need to strategically evaluate their devices’ overall configurations to maintain competitive pricing.
For instance, the Redmi K70 Pro from last year, powered by the Snapdragon 8 Gen 3, was among the most affordable flagship models. However, with a pricier Snapdragon 8 Gen 4, achieving a similar price point for its successor could be challenging for companies like Xiaomi.
Manufacturer Dilemmas
It's important to note that even the Snapdragon 8 Gen 3 wasn't cheap for manufacturers, reportedly costing around $200 per unit. An additional price increase for the Gen 4 could place phone makers in a tough spot, compelling them to either reduce their profit margins or potentially hike the end price for consumers.
