Snapdragon 8 Gen4 Price Soars, Will Android Flagships Face a Price Hike?

Snapdragon 8 Gen4 Price Soars, Will Android Flagships Face a Price Hike?Qualcomm has officially announced that it will hold a Snapdragon Technology Summit on October 22, 2024, at 1:00 AM Beijing time. The new Snapdragon 8 Gen4 chip is expected to be the highlight of the event the following day

Snapdragon 8 Gen4 Price Soars, Will Android Flagships Face a Price Hike?

Qualcomm has officially announced that it will hold a Snapdragon Technology Summit on October 22, 2024, at 1:00 AM Beijing time. The new Snapdragon 8 Gen4 chip is expected to be the highlight of the event the following day. Recently, TF International Securities analyst Ming-Chi Kuo posted on social media that the Snapdragon 8 Gen4 is expected to ship 9 million units in the second half of 2024, a 50% increase compared to the Snapdragon 8 Gen3. The unit price rose 15% to $180 (approximately 1275 yuan).

The skyrocketing price of the Snapdragon 8 Gen4 will undoubtedly put enormous pressure on the prices of Android flagship phones. Previously, Xiaomi CEO Lei Jun stated during the launch of the Xiaomi 14 series that the Xiaomi 14 would be the last flagship to be priced at 3999 yuan. He said that Xiaomi would no longer offer competitive pricing models in the future and would focus on enhancing the quality of new devices.

Lei Jun's statement is not without foundation. With the rising cost of the Snapdragon 8 Gen4 chip, smartphone manufacturers face higher manufacturing costs. To maintain profitability, raising phone prices seems inevitable.

Previously, brands like Xiaomi, OnePlus, and Honor held a significant market share due to their price advantage. However, with the rising chip costs, this strategy may no longer be effective. If Android flagship phones generally become more expensive, these brands will have to face more intense market competition.

Taking Xiaomi as an example, the starting price for the Xiaomi 14 series is 3999 yuan. However, if the cost of the Snapdragon 8 Gen4 increases, the starting price for the Xiaomi 15 series could very well exceed 4000 yuan. Similarly, the starting prices for the OnePlus 13 series and Honor Magic7 series will also rise accordingly, likely reaching around 4500 yuan.

For consumers, the price increase of Android flagship phones is undoubtedly a discouraging piece of news. In the context of a sluggish economy, consumers place more emphasis on value for money. The rising price of flagship phones might affect consumers' willingness to purchase them.

Of course, some argue that it's reasonable for flagship phones to become more expensive as chip performance improves. However, it's crucial to note that the rising chip costs do not justify an unlimited price hike for phones. Smartphone manufacturers should consider consumers' affordability while ensuring profitability, preventing prices from spiraling out of control.

The future trajectory of Android flagship phone prices will depend on various factors, including chip costs, market competition, and consumer purchasing power. However, one thing is certain: the price increase of the Snapdragon 8 Gen4 will have a profound impact on the entire Android flagship phone market.