The cost of smartphones, laptops, and other devices has been steadily increasing in recent years. This increase can be attributed to several factors, including inflation, supply chain disruptions, and the rising demand for high-end features. One of the reasons for the price hike in some flagship phones appears to be the desire for more power. Interestingly, it has been revealed that Qualcomm, the manufacturer of the Snapdragon 8 Gen 2 processor, is selling it at a higher price compared to the manufacturing cost of Apple’s A16 Bionic chip. Here are the details…

Snapdragon 8 Gen 2 Costs More Than Apple’s A16 Bionic

Qualcomm released its latest flagship processor, the Snapdragon 8 Gen 2, in November 2022. Since then, it has been featured in many high-end Android phones, and has often been praised for its performance. However, it appears that this high performance comes at a great cost. Qualcomm is reportedly selling its Snapdragon 8 Gen 2 chip to smartphone makers for $160 per unit. This is higher than the price that Apple pays to make its A16 Bionic chip, which is $110 per unit.

This means that Qualcomm is charging its smartphone partners $50 more for the Snapdragon 8 Gen 2 than Apple is charging its partners for the A16 Bionic. This is a significant difference, and it could lead to higher prices for smartphones that use the Snapdragon 8 Gen 2. There are a few possible reasons why Qualcomm is charging more for the Snapdragon 8 Gen 2.

One possibility is that Qualcomm is merely trying to increase their profits. Alternatively, Qualcomm might hold the belief that their Snapdragon 8 Gen 2 is a superior chip compared to the A16 Bionic, thus justifying a higher price tag. While an additional $50 may not sound like a lot at first glance, when you consider that manufacturers add their profit margin on top of their costs, it becomes clear just how significant this amount is.

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