The next generation of flagship smartphones may come with a heftier price tag, as recent leaks suggest a significant cost increase for upcoming high-end mobile processors. Industry insiders point to a potential 20% price hike for both Qualcomm's Snapdragon 8 Gen 4 and MediaTek's Dimensity 9400 chips, primarily due to the adoption of TSMC's advanced N3E manufacturing process.
Rising Costs in Chip Manufacturing
According to reliable tipster Digital Chat Station (DCS), the Snapdragon 8 Gen 4 is expected to cost around $190, while the Dimensity 9400 could reach $155. This represents a substantial increase from their predecessors, estimated at $152 and $124 respectively. The price surge is attributed to the expensive 3nm fabrication technology employed by TSMC, which is being utilized for both flagship processors.
Impact on Smartphone Prices
The ripple effect of these increased component costs is likely to be felt by consumers. Smartphone manufacturers, faced with higher expenses for core components, may be forced to pass these costs onto buyers. This could result in more expensive flagship devices hitting the market in late 2024 and throughout 2025.
Performance Expectations
Despite the price increase, both chips are expected to deliver significant performance improvements:
- The Snapdragon 8 Gen 4 will feature Qualcomm's first in-house Oryon cores, with early benchmarks indicating a notable boost in performance.
- MediaTek's Dimensity 9400 is set to incorporate ARM's powerful Cortex-X925 core, recently achieving the highest AnTuTu benchmark score ever recorded for an Android device.
Industry Corroboration
This isn't the first time we've heard rumblings of price increases for next-gen mobile chips. Earlier reports from analyst Ming-Chi Kuo suggested an even steeper 25-30% price hike, while leaker Ice Universe also indicated a similar 20% increase for the Snapdragon 8 Gen 4.
Manufacturer Dilemma
The rising costs present a challenging situation for phone makers. Xiaomi, for instance, has already acknowledged the increase in upstream costs and publicly pondered whether to downgrade specifications to maintain current price points or to increase prices for upgraded models.
As the mobile industry grapples with these cost pressures, consumers should brace themselves for potential price adjustments in the next wave of flagship smartphones. The trade-off between cutting-edge performance and affordability is likely to become even more pronounced in the coming year.