Each Snapdragon 8 Gen 2 chip is $50 more expensive than the A16 Bionic.

According to GizChina , manufacturers had to spend more than Apple spent to produce the A16 Bionic in order to obtain the Snapdragon 8 Gen 2 from Qualcomm. In other words, Qualcomm priced the Snapdragon 8 Gen 2 higher than it should have, and the same applies to the upcoming Snapdragon 8 Gen 3.

Android smartphone manufacturers had to spend up to $160 for each Snapdragon 8 Gen 2 chip.

After conducting in-depth market research, the Twitter account @lasterd80, known for its insider information in the tech industry, stated that manufacturers had to pay $160 for a Snapdragon 8 Gen 2 chip. This explains why users had to spend up to $649 for a phone with a Snapdragon 8 Gen 2 chip like the Nubia Red Magic 8 Pro. Essentially, Nubia had to spend approximately 25% of the device's retail price just to equip it with the Snapdragon 8 Gen 2 chip – a significant amount for a single component. As a result, manufacturers wouldn't make a substantial profit without increasing the retail price.

Meanwhile, Apple only spends about $110 per A16 Bionic chip. Compared to the A15 Bionic, Apple needs to spend twice as much to produce the A16 Bionic. Even with the higher production costs, the price for Apple's top-of-the-line chip is still significantly cheaper than the Snapdragon 8 Gen 2, precisely $50 cheaper. Despite the large price difference, the performance difference between the A16 Bionic and the Snapdragon 8 Gen 2 is negligible.

Apple manufactures chips for its own devices, meaning the company doesn't sell them to other device manufacturers. Therefore, Apple doesn't need to worry about profiting from its own chips. Instead, the company makes its profit by selling the devices it produces.

Unlike Apple, Qualcomm doesn't have a commercial smartphone line to sell, so any money Qualcomm earns comes from selling chips. The company plans to apply a similar strategy to the Snapdragon 8 Gen 3, which is manufactured using the more advanced and expensive N4P process.

Source link: https://thanhnien.vn/moi-chip-snapdragon-8-gen-2-dat-hon-a16-bionic-den-50-usd-185230605111337519.htm