Snapdragon 8 Gen 4 shipments projected to increase by 50% this year

Qualcomm‘s upcoming high-end mobile processor, the Snapdragon 8 Gen 4 (or Snapdragon 8 Elite), is expected to see a significant boost in shipments this holiday season, according to analyst Ming-Chi Kuo.

Kuo, a well-respected figure in the tech industry, forecasts a 50% year-over-year increase for Snapdragon 8 Gen 4. The shipments are expected to reach approximately 9 million units in the second half of 2024 compared to the previous generation, the Snapdragon 8 Gen 3.

Qualcomm will see an increase in Snapdragon 8 Gen 4 shipment

Several factors will contribute to the surge, according to Kuo. Firstly, the SD8G4 enjoys a longer sales window compared to its predecessor. Additionally, Kuo suggests increased demand from major smartphone manufacturers such as Samsung.

But perhaps the most significant driver could be the evolving Chinese smartphone market. According to Kuo, the recent Golden Week holiday sales witnessed a dominant performance by Chinese brands, capturing an estimated 80% market share with a 20% year-over-year shipment growth – a stark contrast to flat iPhone sales. The trend is expected to continue through the fourth quarter.

Moreover, Kuo also claims the market share of high-end smartphones (priced above 4,000 RMB) in China will increase from 25-30% in 2023 to 30-35% in 2024. 

Overall, the Chinese smartphone market shipments are expected to reach 280 million units in 2024, a 3% YoY increase, with continued growth projected for 2025.

Kuo believes the positive outlook extends beyond the immediate future. He suggests Qualcomm’s stock price has already accounted for the potential downside of Apple developing its own 5G chips. 

Looking ahead, the company stands to benefit from factors like the growth of AI-powered smartphones and PCs, alongside potential price hikes for SoCs due to the adoption of TSMC’s advanced N3P manufacturing process.

While the immediate future appears bright for Qualcomm’s Snapdragon 8 Gen 4, the long-term market dynamics remain to be seen. Only time will tell if these trends translate into sustained success for the chipmaker.

(Source)