Netizens who pay attention to the market conditions of high-end Android mobile phones can easily find that the price of mobile phones has risen very high in recent years. There are rumors that the price of the Snapdragon 8 Gen 2 processor, the core component of mobile phones, is as high as US$160 (about HK$1,250). Qualcomm’s pricing has made Samsung, etc. Phone makers are in trouble, and the problems will only intensify later this year.
Prices up to $200
The latest news refers to the Snapdragon 8 Gen 3 processor released by Qualcomm at the end of October this year, the price will be 25% higher than Gen 2, and may be as high as $200 (about HK$1,563). Originally, Qualcomm planned to introduce Samsung as a competitor of TSMC, but the Snapdragon 8 Gen 1 manufactured by Samsung received rave reviews, forcing Qualcomm to use TSMC as an OEM, and switching to 4nm N4P process also further increased the cost. Some analysts pointed out that in order to provide the best hardware configuration, leading mobile phone manufacturers such as Samsung and Xiaomi will insist on using Snapdragon 8 Gen 3 in their flagship phones even if the cost is high, but the result is that the profit level is eroded by Qualcomm.
Mobile phone manufacturers may consider MTK
In order to save costs, some manufacturers may continue to use Snapdragon 8 Gen 2, or directly switch to MediaTek’s Dimensity processor. It is rumored that the Dimensity 9300, which uses TSMC’s N4P architecture and has four large Cortex-X4 cores and four large Cortex-A720 cores, will be launched in October. The performance may surpass the Snapdragon 8 Gen 3, but the battery efficiency remains to be seen. MediaTek may rob Qualcomm’s business and market share by lowering prices and compressing profits in exchange for adoption by mobile phone manufacturers.
source:wccftech