The Snapdragon 8 Gen 2 and the A16 Bionic are mass produced on TSMC’s N4 (4nm) process, so it would be assumed that it would cost both Qualcomm and Apple the same, right? Even if that was the case, one rumor states that the company behind the upcoming Snapdragon 8 Gen 3 has attempted to squeeze its smartphone partners for every penny they have, and here is how.
New rumor claims the Snapdragon 8 Gen 2 is sold for $160 per unit to Qualcomm’s smartphone partners
New findings from Derrick on Twitter claim that the Snapdragon 8 Gen 2 is priced higher than what Qualcomm’s clientele would like to pay because, for $160, flagship smartphone makers will have to raise the prices of its devices to generate any meaningful margins. Earlier, we reported about Apple’s A16 Bionic price, and even though it is more than twice as expensive to produce compared to the A15 Bionic, at $110 apiece, it is still $50 cheaper than what Qualcomm is charging.
However, one should note that Apple has developed the A16 Bionic to incorporate into its own iPhone 14 Pro and iPhone 14 Pro Max, not to sell to other device manufacturers. Assuming Apple had some agreement with Android companies to ship them A16 Bionic batches, it is likely that the price would have been higher. Since Qualcomm needs to profit from its Snapdragon 8 Gen 2 sales, it needs to price it at some range, though some readers might argue that forcing manufacturers to pay $160 is steep.
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
Looking at the Snapdragon 8 Gen 2’s price, it is possible Qualcomm charges more for the Snapdragon 8 Gen 3, especially given that it is expected to be mass produced on TSMC’s slightly more advanced N4P process and is rumored to deliver more performance without sacrificing efficiency. This year, none of Samsung’s Galaxy S23 models featured the Korean giant’s Exynos chipset. Instead, all models exclusively shipped with the ‘Snapdragon 8 Gen 2 for Galaxy,’ so Samsung paying Qualcomm a premium means each handset sold globally ate into the company’s margins.
This might be one reason why Samsung has been reported on multiple occasions to develop the Exynos 2400, though we still feel that the Snapdragon 8 Gen 3 would be the preferred choice amongst consumers due to the improvements made by Qualcomm with its Snapdragon 8 Gen 2.