The 2nd generation Snapdragon 8 chip apparently costs more than the production cost of Apple’s A16

One of the knowledgeable sources of the market says that the Snapdragon 8 generation 2 chip Qualcomm which is sold at the price of 160 dollars. Meanwhile, Apple spends around $110 to make the A16 chip. This price difference shows that the selling price of Qualcomm’s chip is higher than the production cost of Apple’s chip.

Snapdragon 8 generation 2 chips and A16 chip Apple’s bionics are known as the most powerful mobile processors in the world, which are based on TSMC’s N4 lithography. At first glance, it seems that because both chips are made by the same company and based on 4nm lithography, they have the same price, but in practice, this is not the case and Qualcomm’s chip is more expensive than Apple’s chip.

Qualcomm chip is also more expensive than Apple chip

One of the whistleblowers of the market stated in his report that Qualcomm The 4nm Snapdragon 8 generation 2 chip manufactured by TSMC sells for $160. Meanwhile, the production cost of Apple’s powerful A16 bionic chip is about $110.

This price comparison shows why some smartphones are more expensive. Keep in mind that it was said earlier that the production cost of Apple’s A16 chip is about twice as much as that of the company’s A15 chip. Despite this double price increase, it is interesting that the production cost of A16 is still lower than that of Snapdragon 8 Gen 2.

It should be noted that Apple does not sell its mobile chips to other companies. Meanwhile, Qualcomm provides chips to mobile manufacturers. For example, if the first company sells its own chips to other mobile phone manufacturers, the prices may be subject to market competition and this company wants to earn more profit from this angle. In this case, even the price of A16 chip could be higher than Snapdragon 8 generation 2.