Qualcomm is expected to release the Snapdragon 8 Gen 4 in October this year. Reliable sources suggest that a significant increase in TSMC’s wafer costs will lead to higher prices for flagship phones equipped with this advanced chip. This shift has sparked intense discussions on Chinese social media platforms.
In October 2023, Vivo introduced the Vivo X100 at a starting price of 3,999 yuan (~$550). The same month, Xiaomi 14 debuted with the same starting price. The Dimensity 9300 and Snapdragon 8 Gen 3 chipsets power the Vivo X100 and Xiaomi 14, respectively.
Citing information obtained from supply chain sources, a Chinese tech blogger claimed that the starting price for Snapdragon 8 Gen 4 smartphones will be around 4,500 yuan. The blogger asked a question: “If the Dimensity 9400 mobile phone costs 3,999 yuan, will you still buy a Snapdragon 8 Gen4 mobile phone?” The responses from netizens varied: some remained true to their choice, while others expressed doubts.
The rise in the cost of chips for mobile phones has always been significant. For example, the purchase price of the Snapdragon 8 Gen 3 can be around $200, which is roughly equivalent to 1,500 yuan (~$207). The Redmi K70 Pro equipped with this chip currently costs 2,999 yuan (~$415) for the 12GB+256GB version, which demonstrates an excellent value for money. However, with the rising cost of the Snapdragon 8 Gen 4, future models such as the Redmi K80 Pro, if equipped with this chip, may go beyond the current price ranges, which will negatively affect their competitiveness and potentially affect sales.
It seems that the increase in cost is primarily due to the use of an advanced 3nm process for the production of Snapdragon 8 Gen 4. While this technology promises higher performance and lower power consumption, it also significantly increases production costs. The increase in the number of EUV lithography tools has significantly increased the cost of producing each wafer and chip. For consumers, this means that they will have to pay more for increased productivity and usability.
Dimensity 9400-based phones such as Vivo X200, X200 Pro, and Oppo Find X8 are expected to hit the market in October this year. Xiaomi 15, 15 Pro, and OnePlus 13 equipped with the Snapdragon 8 Gen 4 chip may be officially unveiled in the same month. The iQOO 13, Realme GT 7 Pro, and Redmi K80 Pro are also expected to debut with Snapdragon 8 Gen 4 by the end of this year.
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