Premium Smartphones to Become Pricier in 2025

Top of The Line Phones Will Get Even More Expensive in 2025

Qualcomm is gearing up for a major change with the upcoming Snapdragon 8 Gen 4, slated for an official unveiling in October. This new SoC will feature custom-designed Oryon cores, showcasing Qualcomm’s in-house CPU designs. However, this move towards greater independence is expected to drive up costs for smartphone manufacturers.

Similar to Apple’s M-series chips, the Snapdragon 8 Gen 4 is rumored to use TSMC’s advanced 3nm process technology (N3E). This will be Qualcomm’s first use of 3nm technology in its SoCs, which promises enhanced performance and efficiency but also increased production costs.

This information comes from Weibo insider Digital Chat Station, who reported that the wafer price for the Snapdragon 8 Gen 4 has increased, impacting the overall cost of the SoC. This price hike could have a ripple effect on the smartphone market, forcing manufacturers to adjust their device specifications to maintain competitive prices.

Flagship killer phones, which aim to offer high-end chips at lower prices, will be most affected. For instance, the Redmi K70 Pro, one of the most affordable phones with a Snapdragon 8 Gen 3 chip, may struggle to keep its price down with the Snapdragon 8 Gen 4.

Even the Snapdragon 8 Gen 3 was costly for smartphone makers, meaning the Snapdragon 8 Gen 4 could pose a tough choice for OEMs. They might have to either sacrifice their profit margins or raise the prices of their popular smartphones.