Snapdragon 8 Gen 4 orders have yet to surface raising questions about pricing

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Snapdragon 8 Gen 4 orders have yet to surface raising questions about pricing
For months now we've heard that the Snapdragon 8 Gen 4 application processor (AP), expected to power the Galaxy S25 Ultra when that phone is released early next year, will be more expensive than the current Snapdragon 8 Gen 3 AP that powers the Galaxy S24 Ultra. Some of that is due to the use of Oryon custom cores replacing the ARM CPU cores previously used. Qualcomm will need to hike its prices to recoup the costs of developing the custom cores.

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But because manufacturers have yet to start mass producing the products that will employ the Snapdragon 8 Gen 4 AP, it is impossible for Qualcomm to gauge the demand for the chipset and thus compute its per unit price. The SoC won't be unveiled until October when the annual Snapdragon Summit takes place. There is another option that phone manufacturers might consider as the MediaTek Dimensity 9400 is shaping up to be a powerful competitor to the Snapdragon 8 Gen 4. But it is hard to imagine Samsung powering the Galaxy S25 Ultra with anything but the Snapdragon 8 Gen 4.

Unlike the Snapdragon 8 Gen 3 SoC, which was built on Qualcomm's 4nm node, the Snapdragon 8 Gen 4 SoC will be produced using TSMC's second-generation 3nm process node (N3E) which will improve the performance and energy efficiency of the silicon compared with the predecessor chip. Let's discuss the pricing issue again and this time we will look at the comments made by TF International's prescient analyst Ming-Chi Kuo.

Usually, Kuo comments on all things Apple but last month he forecast that the Snapdragon 8 Gen 4 AP will cost 25% to 30% more than the  Snapdragon 8 Gen 3 AP which is reportedly priced in a range between $190-$200. Based on these figures, Kuo said that Qualcomm could get between $237.50 and $260 per chipset for the new silicon. That could result in a small price hike for the Galaxy S25 Ultra.

But without any indication of the number of orders that Qualcomm will receive for the Snapdragon 8 Gen 4, the San Diego-based chip designer cannot easily compute a price that it will charge for the new AP. Leaker Yogesh Brar puts a rough estimate for the chipset's price at $220-$240.

Samsung is expected to continue on with its dual chipset strategy which would call for the Galaxy S25 and Galaxy S25+ to be powered by the Exynos 2500 in all markets except for China, the U.S., and Canada. In those markets, the aforementioned models would be equipped with the Snapdragon 8 Gen 4. The latter will also power the Galaxy S25 Ultra in all markets.

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