50%
Plausible
The shift to TSMC’s 2nm process will make Qualcomm more competitive against Apple, but the biggest drawback is that the company’s chipsets are going to be astronomically expensive. Looking at the Snapdragon 8 Elite Gen 5’s price, which was estimated to cost as much as $280 per unit, a new rumor says that the Snapdragon 8 Elite Gen 6 Pro will kick it up a notch.
At $300+, the Snapdragon 8 Elite Gen 6 Pro might only be adopted by ‘Ultra’ flagships, as the high price is expected to reduce adoption amid the ongoing RAM shortage
Later this year, Qualcomm is expected to introduce the Snapdragon 8 Elite Gen 6 Pro and Snapdragon 8 Elite Gen 6, with the higher-end SoC rumored to cost upwards of $300, making it next to impossible for Android smartphone makers to adopt it in every premium handset. Given that the Snapdragon 8 Elite Gen 5 was already a tough pill to swallow, the DRAM crisis makes things even more difficult for Qualcomm’s partners.
To put matters into perspective, the pairing of LPDDR6 RAM and UFS 5.0 storage is more expensive than the Snapdragon 8 Elite Gen 6 Pro, meaning that just these three components are expected to account for $600+ in Bill Of Materials, severely hampering margins for manufacturers.
This situation may explain why the standard Snapdragon 8 Elite Gen 6 is rumored to be adopted in higher volume, as it will likely cost less than the top-end Snapdragon 8 Elite Gen 6 Pro. However, it’s not like TSMC’s newer 2nm process is the only reason why Qualcomm’s premium SoC will fetch that $300+ price.
For instance, the Snapdragon 8 Elite Gen 6 Pro is rumored to have a much faster GPU, record-breaking L2 cache, 50 percent increased bus width, and plenty of other differences separating it from the standard Snapdragon 8 Elite Gen 6. Qualcomm may have anticipated these events, which is why the latter is said to prepare four chipset options for its customers, including a Snapdragon 8 Gen 6 that will replace the Snapdragon 8 Gen 5.
In short, Qualcomm appears to be depending more on its non-flagship chipsets this year to generate the bulk of its annual revenue, which is a decent pivot to undertake during the memory crisis. However, the San Diego firm is also diving into other categories to help it stay relevant.
News Source: Abhishek Yadav
About the author: Omar Sohail is a reporter and analyst for Wccftech's mobile section, specializing in the technology and business of the mobile industry. His expertise lies in the intricate hardware supply chain, covering developments in semiconductor manufacturing, chip lithography, and camera sensor technology.
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