Flagship Phones to Get Expensive! Here’s Why?

A credible source has revealed the upcoming Qualcomm Snapdragon 8 Gen 4 may increase the prices of flagship phones. It is because of the significant increase in TSMC’s wafer costs. The chipset is expected to be launched in October of this year. Let’s quote an example to give you a more clear idea. In October 2023, the Xiaomi 14 was launched Snapdragon 8 Gen 3 and was priced at 3,999 Yuan ($550). So, by taking into account the rising costs, a Chinese tech blogger claimed that the starting price for Snapdragon 8 Gen 4 smartphones will be around $620.

Furthermore, it seems like the increased cost is basically due to the adoption of an advanced 3nm process node for manufacturing the Snapdragon 8 Gen 4. While this cutting-edge technology offers improved performance and lower power consumption, it also significantly raises production costs. In addition, the increase in the number of EUV lithography tools has also notably led to an increase in the production costs of each wafer and chip. For users, it implies that they may have to pay more for improved performance and user experience.

The increased cost of mobile phone chips has always been substantial. For instance, the purchase price of the Snapdragon 8 Gen 3 might be around $200, roughly equivalent to 1,500 Yuan (~$207). The purchase price of SD 8 Gen 4 may increase by 10%-20% which would lead to an increase in the prices of flagship phones.

Consequently, future models such as the Redmi K80 Pro, if arrived with this chip, might exceed current price ranges, and potentially affect the sales of the device.