As inflation continues to impact various sectors, it appears that smartphones might also see a price hike in 2025. According to a recent post on Weibo, the cost of the Snapdragon 8 Gen 4 — the chip anticipated to power most flagship Android phones in 2025 — is expected to rise significantly. This increase extends to the SM8750 wafer used in its production.
Potential Price Increases
While exact figures for the price increase are not provided, even a 10% to 20% hike could lead to a higher MSRP for future flagship Android phones. However, it’s worth noting that production cost increases do not always translate to higher consumer prices.
Current Smartphone Pricing Trends
Flagship phone prices are already near the upper limit of consumer tolerance, with top-tier models from both Android and Apple often priced between $1,000 and $1,200. Once prices rise, they tend to remain high, suggesting that any increase to accommodate the Snapdragon 8 Gen 4 could set a new baseline for flagship phone prices.
Historical Context and Production Costs
The Snapdragon 8 Gen 3 was 25% more expensive than its predecessor, yet only select phones like the Samsung Galaxy S24 Ultra saw a price hike. Models such as the Galaxy S24, Galaxy S24+, and OnePlus 12 maintained their prices despite the increased chip cost.
Technological Advancements Driving Costs
The expected price increase for the Snapdragon 8 Gen 4 is partly due to the new 3nm process adopted by TSMC. The chip will also feature the new Oryon CPU and an updated neural processing unit, promising significant performance improvements. The Snapdragon X Elite, which shares the same CPU, has already outperformed Apple’s M3 MacBook Air in some benchmarks and app emulation.
Future Uncertainties
Despite these projections, nothing is confirmed yet. The Snapdragon 8 Gen 4 is set to launch in October, with concrete price details expected to emerge a few months later. It will likely be one or two months after the launch before the first devices featuring the Snapdragon 8 Gen 4 hit the market.
In summary, while the exact impact on consumer prices remains uncertain, the anticipated increase in production costs for the Snapdragon 8 Gen 4 suggests that flagship Android phones could become more expensive in 2025.