Chipsets produced by Qualcomm are more expensive than Apple!
Qualcomm, one of the world's most popular mobile processor manufacturers, sets the price of its new generation chipsets at a higher rate than Apple models.
In recent years, the price tags attached to smartphones, laptops, and other technological devices have been on an upward trend. This price escalation stems from a variety of elements, including inflation, supply chain disturbances, and the increased demand for cutting-edge features. A closer examination of some flagship phones uncovers an intriguing aspect: the pursuit for more power seemingly contributes to the rising costs. Specifically, a revelation emerges that Qualcomm, the producer of the Snapdragon 8 Gen 2 processor, sets its price higher than the manufacturing cost of Apple’s A16 Bionic chip. Let's delve deeper into this.
In November 2022, Qualcomm introduced its latest flagship processor, the Snapdragon 8 Gen 2. Since its launch, this processor has made its way into several premium Android phones, earning recognition for its remarkable performance. But such high-grade performance carries a hefty cost. Reportedly, Qualcomm sells its Snapdragon 8 Gen 2 chip at $160 per unit to smartphone manufacturers, a figure that surpasses the cost of producing Apple's A16 Bionic chip, which stands at $110 per unit.
Chipsets produced by Qualcomm are more expensive than Apple!
This discrepancy means that Qualcomm is demanding an additional $50 from its smartphone partners for the Snapdragon 8 Gen 2 compared to what Apple charges its partners for the A16 Bionic. This stark difference is significant and may translate into pricier smartphones that incorporate the Snapdragon 8 Gen 2. A few theories attempt to explain Qualcomm's higher pricing for the Snapdragon 8 Gen 2.
It might be a strategy by Qualcomm to bolster their profits, or Qualcomm might regard their Snapdragon 8 Gen 2 as a superior product to the A16 Bionic, warranting a higher price point. Although a surplus of $50 may seem trivial initially, the significance becomes apparent when accounting for manufacturers' added profit margin to their expenses.
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