We’ve been painfully observing the trend for years: Android flagships have a much higher entry price.
And if we are to believe a Chinese leak report, unfortunately the trend is far from over.
Focus chip maker Qualcomm shakes up the smartphone industry. According to Digital Chat Station, the company plans to increase the price of its new flagship Snapdragon 8 Gen 3 chip. This could seriously impact the features of future Android flagships.
Instead of installing expensive brand new chips, some smartphone manufacturers are considering going back to older models such as the Snapdragon 8 Gen 2 (the high-end chip in this year’s top model will surely perform well next year as well).
According to reports, others are considering abandoning Qualcomm altogether and switching to MediaTek. The Taiwanese competitor is slated to introduce the Dimension 9300 in October, which could present a serious alternative. The gap between Qualcomm and MediaTek in terms of performance has narrowed over the past few generations.
The high cost of new high-end chips has put manufacturers under pressure. On the one hand, they don’t want to lag behind technological developments. On the other hand, they have to pass on the increased cost to their customers or compensate them in some other way. The latter is difficult due to intense competition in the industry.
Qualcomm has been a leading provider of smartphone chips for years. Perhaps higher prices will trigger a turning point when cheaper chips from our own production or MediaTek become more attractive. This will be a big blow for Qualcomm.
Smartphone manufacturers therefore face the big challenge of finding the right balance between cost and technology. It remains to be seen which strategy will ultimately prove advantageous to consumers.
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