2023-06-04 10:30:00
In addition to performance testing, another factor impacts the life and success of platforms —their cost. If a priori it was to be expected that Qualcomm’s Snapdragon 8 Gen 2 and Apple’s A16 Bionic would cost similar prices to manufacturers —after all, they use TSMC’s 4nm process—, the financial reality seems to be a little distant.
According to tipster Derrick on Twitter, the Snapdragon 8 Gen 2 is priced higher than Qualcomm’s clientele would be willing to pay: costs US$ 160 against the US$ 110 of the Apple platform. Of course, it is still worth noting that they are different business models, as Apple’s processor is made exclusively for the company’s cell phones, while the Snapdragon chip goes to a variety of Android phones. This means, however, that manufacturers will have to increase the prices of the devices to obtain a greater profit margin with the powerful processor.
It’s crazy that Qualcomm charged companies $160 for the 8 gen 2. Guess this is the reason Samsung is giving exynos another try (even though they shouldnt). Qualcomm is charging an arm and leg for this chip.
— Derrick (@lasterd80) June 2, 2023
Equally, since Qualcomm needs to profit from Snapdragon 8 Gen 2 sales, it needs to price it in some range, although some might argue that $160 is a high price for the chip.
This lights a red flag as well about the value of the Snapdragon 8 Gen 3, especially as it is expected to be mass-produced on TSMC’s slightly more advanced N4P process.
It is also worth remembering that, this year, none of Samsung’s Galaxy S23 models featured the Korean giant’s Exynos chipset. Instead, all models ship exclusively with “Snapdragon 8 Gen 2 for Galaxy”, so Samsung paying a premium to Qualcomm means that every device sold globally has eaten into the company’s margins.
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