Qualcomm wants Android device makers to pay even more for its next flagship chip
Qualcomm’s Snapdragon 8 Elite offers a notable improvement in performance and efficiency over previous Snapdragon chips, promising next-gen Android phones with even more impressive features and longer battery life. However, this comes at a cost, with reports suggesting manufacturers are paying Qualcomm as much as $190 for the chip — 20% more than the previous models. With such a steep price rise this year, you might expect Qualcomm not to hike the price of its next flagship SoC. Early reports suggest that might not be the case, though.
A report from Korean outlet Kipost claims Qualcomm will significantly hike the price of the Snapdragon 8 Elite (2nd gen) (via @Jukanlosreve). Even a 5% price bump over the Snapdragon 8 Elite would push its successor’s price to over $200. Several internal and external factors will seemingly be responsible for this price bump.
Chinese leaker Digital Chat Station claims the Snapdragon 8 Elite (v2) will be fabricated on TSMC’s N3P node. This is an enhanced version of TSMC’s current 3nm node, which should deliver even better transistor density for better performance and efficiency. He claims the chip could bring at least a 20% performance improvement. If true, Qualcomm will at least have a strong reason to charge more for its upcoming AP.
However, the increased application processor (AP) cost could put pressure on the profit margins of device makers, like Samsung, Xiaomi, and others. To compensate for this, they might bump the price of their 2026 flagship phones. There are rumors that Samsung’s Galaxy S25 series will cost more in some markets due to increased component pricing. The Galaxy S24 Ultra was already $100 more expensive than its predecessor.
Qualcomm has no direct rival in the smartphone SoC space
Android device makers have no choice but to rely on Qualcomm for sourcing flagship SoCs for their phones and tablets. MediaTek is the only other notable SoC supplier, but its flagship chips are typically behind those of Snapdragon. Its latest Dimensity 9400 changes this, rivaling or coming close to the Snapdragon 8 Elite in most benchmarks and workloads. However, the company needs to prove it can keep this momentum up to win the trust of device makers and consumers.
