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Flagship Android phones may cost more due to rising chip prices

By Tsveta Ermenkova

Published: Sep 30, 2024, 7:37 AM

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Flagship smartphones displayed side by side, laying on a table.

Next month, we are looking forward to Qualcomm revealing the Snapdragon 8 Gen 4 and MediaTek launching its competitor, the Dimensity 9400. Qualcomm has previously hinted that its upcoming flagship chipset will carry a higher price tag than its predecessor, and recent leaks have suggested an increased price point, too. However, no specific figure was available until now.

The Snapdragon 8 Gen 4 and Dimensity 9400 are set to be 20% pricier than their predecessors

A fresh leak from usually reliable tech tipster Digital Chat Station (translated source) hints that Qualcomm and MediaTek's upcoming flagship processors could come with a heftier price tag. Both the Snapdragon 8 Gen 4 and Dimensity 9400 are rumored to be about 20% pricier than their predecessors, thanks to the high cost of TSMC's 3nm manufacturing process.

Specifically, the Snapdragon 8 Gen 4 might run around $190, while the Dimensity chip is estimated at $155. However, the leaker cautioned that these are rough estimates, as chipset prices can vary based on factors like exclusivity deals and production volume.

Screenshot of a post by Digital Chat Station on Weibo.

Snapdragon 8 Gen 4 and Dimensity 9400 might be about 20% pricier than their predecessors. | Screenshot by PhoneArena

This isn't the first time we've heard about the rising cost of next-gen chips. In June, industry analyst Ming-Chi Kuo predicted an even bigger jump, estimating a 25-30% increase.

Tipster Ice Universe also chimed in, pointing to a 20.68% rise for the Snapdragon 8 Gen 4. Whether it's closer to 20% or 30%, one thing's for sure – both flagship processors are seeing a price bump this year.

If manufacturers are shelling out more for these key components, you can bet they'll pass that cost on to consumers. So, I would not be surprised if flagship phones, packing these two chipsets, get more expensive this year and into 2025.

The tricky part is figuring out exactly how much this will impact the final price of phones. After all, they will probably see a bump in cost, but it won't be the full amount of the chip's price increase.

Now, you may wonder whether the higher price tag is justified? Well, the Snapdragon 8 Gen 4 is set to bring some significant upgrades this year. This new SoC will be Qualcomm's first to include its own Oryon cores, and early benchmarks indicate a pretty impressive performance boost.

On the other hand, MediaTek's Dimensity 9400 will feature ARM's most powerful Cortex-X925 core. It recently achieved the highest AnTuTu benchmark score ever recorded for an Android phone.

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Tsveta, a passionate technology enthusiast and accomplished playwright, combines her love for mobile technologies and writing to explore and reveal the transformative power of tech. From being an early follower of PhoneArena to relying exclusively on her smartphone for photography, she embraces the immense capabilities of compact devices in our daily lives. With a Journalism degree and an explorative spirit, Tsveta not only provides expert insights into the world of gadgets and smartphones but also shares a unique perspective shaped by her diverse interests in travel, culture, and visual storytelling.