With the launch of the Snapdragon 8 Gen 2, Qualcomm placed its partners, Samsung included, in a challenging predicament by reportedly setting the price of the chipset’s price at $160. This new pricing positions it at a higher cost point compared to Apple’s A16 Bionic chipset.
Now that the next generation Snapdragon 8 Gen 3 is close to launching, rumors suggest that it might cost even more than its predecessor. This can be blamed on the transition to TSMC’s 4nm N4P process for the 8 Gen 3 chip, which is not cheap by any means.
However, relying on Samsung’s foundry for the Snapdragon 8 Gen 1 resulted in performance and yield issues, which is why Qualcomm is now sticking with its age-old supply partner TSMC, reports Chinese tipster Digital Chat Station.
But this increase in price will also leave OEMs in a tough spot, possibly forcing them to downgrade to the Snapdraogon 8 Gen 2 or switch over to MediaTek for its upcoming Dimensity 9300 chip, which is expected to be cheaper.
The Dimensity 9300 does hold a certain advantage due to its compatibility with faster LPDDR5T RAM and a distinct CPU arrangement that could potentially outperform the Snapdragon 8 Gen 3 in specific domains, although possibly at the expense of efficiency. But challenging Qualcomm’s dominant market presence is not going to be a simple task for MediaTek.
Even if Qualcomm were to price the Snapdragon 8 Gen 3 at $200, renowned brands like Samsung and Xiaomi might still lean towards it to furnish their customers with high-tier Android smartphone hardware. This choice could impact their profit margins, underscoring the intricate dynamics of the competitive arena.
