The Galaxy S25 is set to have many improvements and will be released early next year. One major upgrade is the Snapdragon 8 Gen 4 chip, which offers much faster performance. However, this could have some negative effects on the phone.
Tipster Digital Chat Station reports that the Snapdragon 8 Gen 4 (model number SM8750) will raise smartphone prices. This is because the chip will be more expensive than earlier versions, like the Snapdragon 8 Gen 3.
The display and chipset are already the most costly parts of a smartphone. An increase in the chipset price could make it difficult for smartphone brands to manage costs.
So, OEMs have three options:
- Pass the price increase to consumers by raising smartphone prices.
- Use a cheaper chipset, like the Snapdragon 8s Gen 3 or last year’s model.
- Lower manufacturing costs by using cheaper components, such as the display, camera, or battery.
However, the price increase for the Snapdragon 8 Gen 4 might be so high that reducing the cost of other components may not offset the chipset’s price hike.
Why is the Snapdragon 8 Gen 4 expected to be so expensive?
The price increase could be due to Qualcomm’s new custom CPU core, Oryon. This core matches the performance of Apple’s A and M series chips used in iPhones, iPads, and Macs, offering a significant performance boost over previous Snapdragon chips.
Additionally, the Snapdragon 8 Gen 4 will be manufactured using TSMC’s second-generation 3nm process node, N3E. This is the same technology used for Apple’s M4 and the upcoming A18 Pro chipsets.
This isn’t the first time Qualcomm’s new chip has led to higher smartphone prices. In 2020, the Snapdragon 865 caused Xiaomi to raise the price of the Mi 10 by $140 compared to the Mi 9.
However, due to Samsung’s extensive supply chain, the company might not raise the price of the Galaxy S25 compared to the Galaxy S24 by absorbing the chip’s price increase. If Samsung decides to do this, there might not be significant upgrades in other features, such as the camera or display.
What we think?
I think the Galaxy S25 will be great with the new Snapdragon 8 Gen 4 chip. But, it might be more expensive because the chip costs more.
Samsung could raise the phone’s price or use cheaper parts. They might keep the price the same by not upgrading other features. Overall, it’s exciting, but I’m worried about the cost.
