This is why Samsung might hike the price of the Galaxy S25 Ultra next year

This is why Samsung might hike the price of the Galaxy S25 Ultra next year
The next flagship application processor (AP) from Qualcomm will be the Snapdragon 8 Gen 4 which will be introduced by the San Diego-based chip designer during the next Snapdragon Summit. The latter will take place between October 24th and October 26th. We can expect the Snapdragon 8 Gen 4 to power many Android flagship models next year including the Samsung Galaxy S25 and Galaxy S25+ models in the U.S., and the Galaxy S25 Ultra everywhere.

According to TF International analyst Ming-Chi Kuo, mass production of the Snapdragon 8 Gen 4 AP will start during the second half of this year. Usually, the introduction of a powerful new chipset would generate excitement and yeah, maybe there is some anticipation from phone enthusiasts. But for many, the focus could be on some potentially bad news. 

Kuo forecasts that the Snapdragon 8 Gen 4 could cost 25%-30% more than the Snapdragon 8 Gen 3 which is priced at $190-$200. Based on Kuo's prediction, the new flagship AP could be priced in a range between $237.50 and $260.

The reason for the higher price has to do with how the Snapdragon 8 Gen 4 will be manufactured. For the first time, a Snapdragon chipset will be produced using TSMC's 3nm process node. To be more precise, the second-generation N3E node, the same one used to build Apple's new A18 Pro chip, will be deployed and since it is cutting-edge tech, the price tag is higher. The problem with a higher price tag for the AP is that all or some of the increase could trickle down to the retail price of any new phone, such as the Galaxy S25 Ultra, that is powered by it.

Demand for the new silicon should be brisk; Kuo recognizes this by stating that AI-driven demand for new flagship smartphones will result in a high single-digit growth rate for Snapdragon 8 Gen 4 chips compared to its predecessor. The Snapdragon 8 Gen 4 is rumored to get by without low-power efficiency CPU cores.

The latest rumored configuration for the Snapdragon 8 Gen 4 includes a pair of big Phoenix CPU cores and six medium Phoenix CPU cores. The low-power efficiency cores are usually used to handle less complex tasks that don't require energy-consuming processing power. The Snapdragon 8 Gen 4 SoC will face competition from the MediaTek Dimensity 9400 AP.

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