According to GizChina , to get the Snapdragon 8 Gen 2 from Qualcomm, manufacturers had to spend more than what Apple spent to produce the A16 Bionic. In other words, Qualcomm priced the Snapdragon 8 Gen 2 higher than it actually was, and the same thing happened with the upcoming Snapdragon 8 Gen 3.
Android smartphone makers have had to spend up to $160 for each Snapdragon 8 Gen 2 chip.
Digging deeper into the market, @lasterd80, a well-known insider in the tech industry, said on Twitter that manufacturers were paying $160 for a Snapdragon 8 Gen 2 chip. That's why users had to pay up to $649 for a Snapdragon 8 Gen 2 phone like the Nubia Red Magic 8 Pro. Basically, Nubia had to spend about 25% of the retail price of the device just to equip the Snapdragon 8 Gen 2 chip - a large percentage for a component in the device. As a result, manufacturers won't make a significant profit without increasing the retail price.
Meanwhile, Apple only spends about $110 per A16 Bionic chip. Compared to the A15 Bionic, Apple needs to spend twice as much to produce the A16 Bionic. Even with the higher manufacturing costs, the price of Apple's top-of-the-line chip is still much cheaper than the Snapdragon 8 Gen 2, by $50 to be exact. While the price difference is large, the performance difference between the A16 Bionic and the Snapdragon 8 Gen 2 is negligible.
Apple makes its own chips for its devices, meaning it doesn’t sell them to other device makers. So Apple doesn’t have to worry about making a profit from its chips. Instead, the company makes its profit by selling devices to the market.
Unlike Apple, Qualcomm doesn’t have a commercial smartphone line to sell, so any money Qualcomm makes comes from selling chips. The company is expected to apply a similar strategy to the Snapdragon 8 Gen 3, which is built on the more advanced and more expensive N4P process.
Source link
Comment (0)