In recent years, the prices of smartphones, laptops, and other devices have been on the rise. This upward trend can be attributed to various factors, such as inflation, disruptions in the supply chain, and the increasing demand for advanced features.
Greater processing power seems to be a major contributing factor to the higher prices of certain flagship phones. Surprisingly, it has come to light that Qualcomm is selling its current flagship Android chip, the Snapdragon 8 Gen 2, at a higher price compared to the much more powerful rival Apple A16 Bionic.
$160 vs $110
According to reports, Qualcomm is selling its Snapdragon 8 Gen 2 chip to smartphone manufacturers at a price of $160 per unit. This price point is notably higher than what Apple pays for its A16 Bionic chip, which costs $110 per unit to produce.
This discrepancy in pricing means that Qualcomm is charging its smartphone partners an additional $50 compared to what Apple charges its partners for the A16 Bionic chip. This price difference could potentially result in higher costs for smartphones utilizing the Snapdragon 8 Gen 2 chip.
There are a couple of possible reasons for Qualcomm’s decision to charge a higher price for the Snapdragon 8 Gen 2 chip. One possibility is that the company is aiming to maximize its profits by setting a higher price point.
Another explanation could be that Qualcomm believes its Snapdragon 8 Gen 2 chip offers superior performance and features compared to Apple’s A16 Bionic chip, justifying the higher price.
Although an additional $50 per unit might not seem substantial, it can have a significant impact when factoring in manufacturers’ profit margins. As manufacturers add their own markups to the cost, the higher price set by Qualcomm could result in noticeable increases in the final price of smartphones that incorporate the Snapdragon 8 Gen 2 chip.