Qualcomm produces processors based on the ARM architecture for almost all smartphones ranging from entry-level devices to flagships. The company has now become the sole front of performance in android devices though its products are still behind Apple’s offerings. The Snapdragon 865 made 5G available to all android flagships even the 5G connectivity in the mid-range offerings is due to Qualcomm’s efforts.
With the current global situation, it has become difficult for any company to operate efficiently, and it is true for Qualcomm too. Reports suggest that Qualcomm is asking for more than usual for its flagship processor. These are still rumors, and the company hasn’t even responded to these yet, but the increased price could be due to supply chain disruptions and hence increased production costs too.
SD875 Chip 'Set' $250, SD875 $130
SD865 Chip 'Set' $150 ~ $160, SD865 $80
– It is said that Xiaomi is in the middle of fierce debate about how much it will cost the flagship product.(SD875)
source : https://t.co/wpdqaKoQRy
— Sleepy Kuma (@Kuma_Sleepy) June 27, 2020
Qualcomm is reportedly asking for around $250 (which is around $100 more than the usual price of $150-160) for its upcoming Snapdragon 875 SoC. The cost of production for SD 875 is $130 which is $50 more than its predecessor. The same could be the story for the respectively lower-tier products too. It means we could expect smartphones to become more and more expensive. Companies like Xiaomi and OnePlus who make budget flagships will be the most affected.
It is said that Qualcomm is trying to decrease production costs, but the price of the improved modem alone costs considerably more than its counterpart in SD 865. Lastly, it would be interesting to see its effect on “flagship killer” devices.