Qualcomm’s new chip could make Android phones more expensive

• Qualcomm’s Snapdragon 8 Gen 2 is rumored to be priced at $160, surpassing Apple’s A16 Bionic chipset in cost.
• Snapdragon 8 Gen 3 could cost more than Gen 2 due to TSMC’s 4nm process.
• The rising price may prompt OEMs to downgrade to Snapdragon 8 Gen 2 or opt for MediaTek’s Dimensity 9300.

The Snapdragon 8 Gen 2’s release has presented a dilemma for Qualcomm’s partners, including Samsung, as the chipset’s price is rumored to be $160. This pricing places it higher than Apple‘s A16 Bionic chipset.

As the launch of the next-generation Snapdragon 8 Gen 3 approaches, rumors indicate that it could be even more expensive than its predecessor. The higher cost is attributed to the shift to TSMC’s 4nm N4P process for the 8 Gen 3 chip, which comes at a significant expense.

Reportedly, using Samsung’s foundry for the Snapdragon 8 Gen 1 led to issues in performance and yield. Therefore, Qualcomm has opted to stick with its long-standing supply partner, TSMC, for the Snapdragon 8 Gen 3, as shared by Chinese tipster Digital Chat Station.

The rising price could pose challenges for OEMs, potentially leading them to consider options like downgrading to the Snapdragon 8 Gen 2 or switching to MediaTek’s anticipated Dimensity 9300 chip, which is anticipated to be more affordable.

The Dimensity 9300 offers an edge with its support for faster LPDDR5T RAM and a unique CPU setup that might excel in specific areas compared to the Snapdragon 8 Gen 3, though potentially sacrificing efficiency. However, competing with Qualcomm’s strong market position won’t be an easy feat for MediaTek.

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Even if Qualcomm prices the Snapdragon 8 Gen 3 at $200, popular brands like Samsung and Xiaomi might still prefer it to offer top-tier Android smartphone hardware to customers. However, this decision could affect their profit margins, highlighting the complexities of the competitive landscape.

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