The future Snapdragon 8 Gen 3 promises to be up to 30% faster than the current Snapdragon 8 Gen 2. But Qualcomm's processor will not only improve its performance. The Snapdragon 8 Gen 3 will have a higher manufacturing cost, which could impact the price of Android smartphones or even its continued use by large manufacturers such as Samsung and Xiaomi.
Is it MediaTek's turn to take over?
If the Snapdragon 8 Gen 3 price increase is confirmed, each brand will have to re-evaluate the cost-benefit ratio of its products. And we're talking about market giants like Samsung, Xiaomi and OnePlus. If smartphone companies don't find it feasible to choose between passing this cost increase on to customers or reducing their profit margins, they may turn to other alternatives. And that's where MediaTek should come in.
Recently, South Korean manufacturer Sk Hynix announced its new LPDDR5T RAM standard, which should hit the market as the fastest in the world. And the processor that will support LPDDR5T RAM is not Qualcomm's upcoming Snapdragon chipset, but MediaTek's Dimensity 9300.
Given that other processors are likely to support LPDDR5T RAM advancements in the future, it is possible that Snapdragon will also include the new technology. Currently, however, the potential price increase of Qualcomm's product and the news of the Dimensity 9300 have caused smartphone companies to reevaluate their suppliers.
What is the cause of the Snapdragon 8 Gen 3 price increase?
Information about the possible increase in the cost of the Snapdragon 8 Gen 3 was leaked on Chinese social media platform Weibo. According to the information on the platform, while the Snapdragon 8 Gen 2 cost smartphone companies about $ 160, the next generation of Qualcomm's processor could hit the market for $ 200.
The price increase would be justified by the technology needed for the new generation of processors to bring higher performance and power efficiency, as well as other innovative features. To this end, the new Snapdragon 8 Gen 3 will be developed using TSMC's 4 nm N4P process. This would mean higher costs for Qualcomm.
The new processor will be officially unveiled on October 24 at the Snapdragon Summit. Until then, the information should be considered a rumor, but the possibility of a price increase is already creating concern about the potential impact on smartphone companies and consumers.
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