Qualcomm’s Snapdragon 8 Gen 4: The Truth Behind the Higher Price Tag

The Snapdragon 8 Gen 4 is set to debut with a hefty price tag of $240, a 20% increase from its predecessor, the Snapdragon 8 Gen 3. One potential reason for this price hike is the rising cost of silicon wafers used in TSMC’s second-gen 3nm process node (N3E). As the first Snapdragon 8 flagship chip produced on this node, a higher price would be expected, considering wafer prices have doubled from $15K to $30K.

A New Challenger in Town: MediaTek’s Dimensity 9400

Meanwhile, MediaTek has announced its Dimensity 9400 AP, also manufactured by TSMC using its second-gen 3nm node. Priced at $155, this chip poses a significant challenge to Qualcomm’s flagship offering. As a rival to the Snapdragon 8 Gen 4 SoC, it’s no surprise that rumors suggest Samsung may be using the Dimensity 9400 to power the Galaxy S25 base model in most parts of the world.

The Bill of Materials: A Glimpse into the iPhone’s BOM

Cowan’s breakdown of the iPhone 16 Pro Max’s Bill of Materials (BOM) reveals a staggering price for the A18 Pro AP – a whopping $45. This figure puts Apple’s pricing strategy in stark contrast to Qualcomm’s approach, as seen in the image below.

Cowan’s BOM for the iPhone 16 Pro Max shows a $45 price for the A18 Pro AP. | Image credit-innoGyan

Why the Wide Discrepancy in Pricing?

One major factor contributing to the disparity in pricing between Apple and Qualcomm is the latter’s need to recoup its investment in developing the Snapdragon 8 Gen 4 and selling it to other companies. Apple, on the other hand, can maintain a lower price point since it uses the chips it develops for its own devices, eliminating the need for additional profit margins.

Another possible reason for the higher price tag is Qualcomm’s decision to debut its own CPU cores for the Snapdragon 8 Gen 4, rather than licensing Cortex CPU cores from Arm. Developing these cores likely incurred significant costs, which may be reflected in the final product pricing.

What’s Next for the Snapdragon 8 Gen 4?

The Snapdragon 8 Gen 4 is set to make its debut at the Snapdragon Summit, taking place in Hawaii from October 21-23. With its cutting-edge technology and premium features, this chip promises to be a game-changer in the world of mobile processors. Stay tuned for more updates on this highly anticipated device.