San Francisco: Much to the surprise of the market watchers, Qualcomm’s Snapdragon 8 Gen 2 is selling at higher price than Apple’s flagship A16 Bionic processor.
Qualcomm’s Snapdragon 8 Gen 2 is billed as the best Android processor. But, Apple’s A16 Bionic is much faster and more powerful than its Qualcomm rival.
It has however come to light that Qualcomm is selling its Snapdragon 8 Gen 2 chip to smartphone manufacturers at a price of $160 per unit. This is $50 more than what Apple pays for its A16 Bionic chip, which costs $110 per unit to produce.
Qualcomm released its latest flagship processor, the Snapdragon 8 Gen 2, in November 2022. Since then, it has been featured in many high-end Android phones, and has often been praised for its performance. But, this comes at a great cost.
There are a couple of possible reasons why Qualcomm is charging more for the Snapdragon 8 Gen 2 chip. One possibility is that the company is aiming to maximize its profits by setting a higher price point.
Another explanation could be that Qualcomm believes its Snapdragon 8 Gen 2 chip offers superior performance and features compared to Apple’s A16 Bionic chip.
Although an additional $50 per unit might not seem substantial, it can have a huge impact on manufacturing cost and manufacturers’ profit margins. As manufacturers add their own markups to the cost, the higher price set by Qualcomm could result in noticeable increases in the selling price of smartphones that incorporate the Snapdragon 8 Gen 2 chip.
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