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

According to GizChina , to get the Snapdragon 8 Gen 2 from Qualcomm, manufacturers had to spend more than what Apple spent to produce the A16 Bionic. In other words, Qualcomm priced the Snapdragon 8 Gen 2 higher than it actually was, and the same thing happened with the upcoming Snapdragon 8 Gen 3.

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

Digging into the market, the @lasterd80 account, famous for its insider information in the technology industry, said on Twitter that manufacturers had to pay $160 for a Snapdragon 8 Gen 2 chip. That is why users have to pay up to $649 for a phone with Snapdragon 8 Gen 2 chip like Nubia Red Magic 8 Pro. Basically, Nubia had to spend about 25% of the device's retail price just to equip the Snapdragon 8 Gen 2 chip - a large percentage for a component in the device. As a result, manufacturers will not earn significant profits 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 manufacturing costs, the price of Apple's top-of-the-line chip is still much cheaper than the Snapdragon 8 Gen 2, by $50 to be exact. While the price difference is large, the performance difference between the A16 Bionic and the Snapdragon 8 Gen 2 is negligible.

Apple makes its own chips for its devices, meaning it doesn’t sell them to other device makers. So Apple doesn’t have to worry about making a profit from its chips. Instead, it makes its profit by selling devices to the market.

Unlike Apple, Qualcomm doesn't have a commercial smartphone line to sell, so any money Qualcomm makes comes from selling chips. The company is expected to apply a similar strategy to the Snapdragon 8 Gen 3, which is made on the N4P process, which is more advanced and costs more to produce.

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