Major chipset giant Qualcomm is all set to introduce its latest flagship chipset called the Snapdragon 8 Gen 4 at the upcoming Snapdragon Summit in October. The brand’s new 8-series processor will flaunt in-house CPU designs alongside custom Oryon cores. All the new improvements and performance enhancements are said to cost the company a lot, resulting in a more expensive chipset.
A report last year suggested that the successor to the Snapdragon 8 Gen 3 will be pricier. Now, yet another source has claimed that the Qualcomm Snapdragon 8 Gen 4 processor will be more expensive than its predecessor. This will result in an increase in the price of the flagship phones this year.
The Snapdragon 8 Gen 4 will allegedly be more expensive than the predecessor
According to the Weibo leaker Digital Chat Station, the cost of the Snapdragon 8M8750 aka Snapdragon 8 Gen 4’s wafer has increased. This will significantly increase the cost of the upcoming flagship SoC from the chipset maker. The Snapdragon 8 Gen 4 being more expensive isn’t entirely surprising. The company had already hinted at higher costs for the SoC due to the adoption of the new production technologies.
The price hike of the new Snapdragon chipset will affect sub-$500 flagship phones
The increase in the cost of the upcoming Snapdragon 8 Gen 4 chipset will affect sub-$500 flagship phones. The source suggests that handsets falling in the Yuan 3,000 (around $420) range would be mostly affected. The smartphone makers will have to rethink the configuration of their flagship phones in this price range.
The tipster recently also suggested that the Xiaomi 15 series will be pricier than its predecessor. These phones are expected to be among the first devices to utilize the Snapdragon 8 Gen 4 chipset. Notably, last year’s Redmi K70 Pro was one of the most affordable Snapdragon 8 Gen 3-powered flagships. However, the company would find it difficult to offer the K70 Pro’s successor at similar pricing this year.
If the reports are to be believed, Qualcomm charges manufacturers around $200 for each unit of the Snapdragon 8 Gen 3 chipset. So, the further increase in the cost of the upcoming chipset will put the phone makers in a dilemma. They will either have to choose between letting go of their profit margins or increasing the price of the devices.
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