Snapdragon 8 Gen4 Chip Price Hike May Lead to Increased Flagship Smartphone Prices

Snapdragon 8 Gen4 Chip Price Hike May Lead to Increased Flagship Smartphone PricesAccording to supply chain sources, upcoming flagship smartphones powered by the Snapdragon 8 Gen4 will be significantly more expensive than their predecessors. The primary reason behind this price increase is the rising cost of the chip itself

Snapdragon 8 Gen4 Chip Price Hike May Lead to Increased Flagship Smartphone Prices

According to supply chain sources, upcoming flagship smartphones powered by the Snapdragon 8 Gen4 will be significantly more expensive than their predecessors. The primary reason behind this price increase is the rising cost of the chip itself. Faced with this cost pressure, phone manufacturers are also facing a dilemma - they either raise prices or make compromises in other areas to maintain similar pricing to the previous generation.

The Snapdragon 8 Gen4 chip reportedly costs $180 per unit, which translates to roughly 1200 yuan. This chip leverages TSMC's second-generation 3nm process, which results in higher manufacturing costs compared to the previous 4nm process. However, despite the price increase, the Snapdragon 8 Gen4 is still expected to enjoy a strong market presence. Industry sources suggest that the chip is projected to ship 9 million units in the same period as the Snapdragon 8 Gen3, representing a 50% year-over-year increase.

Analysts attribute the expected growth in Snapdragon 8 Gen4 shipments to several factors. Firstly, the chip is being launched earlier, with availability starting in the Q4 quarter, extending its market life cycle. Secondly, Samsung's increased demand for Qualcomm chips is driving up demand for the Snapdragon 8 Gen4. Lastly, the growth in the share of high-end smartphones from Chinese brands is expanding the market for flagship chips.

Beyond the chip cost increase, the high prices of storage components are also contributing to higher smartphone prices. As is well known, storage prices fluctuate cyclically, and they are currently at their peak. Xiaomi's Wang Teng has also confirmed that memory prices have been steadily rising for a year, reaching a high point, which explains the larger price increases for high-memory configurations.

The combined effect of rising chip and storage costs will inevitably lead to significant price hikes for the upcoming generation of flagship smartphones. Therefore, consumers might want to refrain from buying new flagships at launch and wait for prices to stabilize and configurations to improve.