A17 Pro chip production cost is cheaper than Snapdragon 8 Gen 2, but 27% more expensive than A16 Bionic

Because it is manufactured on TSMC's next generation architecture, which is considered the most modern in the industry, of course the improvements that the new A17 Pro brings compared to the A16 Bionic are enough to make the difference in product cost. export is not too difficult to understand. But the problem is how much is this difference? Is it worth it compared to the upgrades that users receive?

According to Nikkei estimates, the production cost of the A17 Pro is 27% more expensive than the A16 Bionic. Previous reports from Nikkei said that the A16 Bionic cost Apple $110 to produce, while the A17 Pro costs a bit more, at $130/product. What is worth noting is that despite being manufactured on TSMC's 3nm process, along with facing a series of productivity issues, Apple still brought in a difference of only 20 USD between the two chipsets, which is a perfect number. completely acceptable.

Even the Snapdragon 8 Gen 2 launched by Qualcomm in 2022 is more expensive than Apple's new and best A-series chip. The estimated price of 130 USD for the A17 Pro is still cheaper than the Snapdragon 8 Gen 2 that Qualcomm partners have to pay 160 USD for each to equip on their flagship smartphone models. Another important thing to note is that the A17 Pro is only used in Apple's iPhone 15 Pro and iPhone 15 Pro Max and is not sold to any other company. Meanwhile, the Snapdragon 8 Gen 2 is sold to other companies. by Qualcomm and is available on millions of Android smartphones.

After all, the ultimate goal of chipset manufacturers is to make a profit, so they need to charge higher prices to their partners to ensure profits. That is part of the reason why the price of Snapdragon 8 Gen 2 will be higher than A17 Pro. But if the price continues to increase on Snapdragon 8 Gen 3 as many rumors have said recently, it will be a big difficulty for Qualcomm's partners to adjust profit margins while still ensuring product prices. competitive enough. Some large OEMs may even choose to look to rival products of Snapdragon 8 Gen 3, such as Dimensity 9300, MediaTek's highly rated new chip.

Micah Soto

Update 17 October 2023