
Qualcomm’s strategic transition to TSMC’s 3nm ‘N3P’ node for its flagship chipsets, including the Snapdragon 8 Elite Gen 5, positions the company to vie with industry giants such as Apple. However, this competitive edge comes at a higher cost. The Snapdragon 8 Elite, which debuted as the first 3nm chipset for Android flagship devices last year, was already a premium product, and the latest iteration is expected to escalate this pricing for manufacturers.
According to recent projections, the cost of the Snapdragon 8 Elite Gen 5 could increase by 27% compared to its predecessor, compelling manufacturers to reconsider their pricing strategies. With the anticipated price range for the new chipset landing between $240 and $280, smartphone makers face the challenge of either raising retail prices or compromising on features.
Implications of Snapdragon 8 Elite Gen 5 Pricing on Future Products
Insights shared by industry analyst Abhishek Yadav on X provide a detailed overview of Qualcomm’s flagship chip pricing history, revealing the Snapdragon 8 Gen 1 was priced at approximately $120–130, while the flagship Snapdragon 8 Elite was priced at $220. The leap to the Snapdragon 8 Elite Gen 5 signifies a substantial cost increase that could push the next generation, the Snapdragon 8 Elite Gen 6, above the $300 mark.
Several factors influence these prices, including negotiations between Qualcomm and its clients, which vary based on order volumes. Smaller orders tend to incur higher costs, while bigger players like Samsung benefit from discounts due to their high volume of flagship device shipments.
To navigate these costs effectively, Qualcomm is reportedly considering leveraging Samsung’s expertise in producing chipsets using the 2nm GAA (Gate-All-Around) process, thereby enhancing its bargaining power with TSMC. This strategic dual-source initiative is critical, especially as the Snapdragon 8 Elite Gen 6 approaches its release on TSMC’s 2nm technology.
Estimated cost to OEMs for flagship Snapdragon chipsets: • 8 Gen 1: $120–130 • 8+ Gen 1: $120–130 • 8 Gen 2: $160 • 8 Gen 3: $170–200 • 8 Elite: $220+ • 8 Elite Gen 5: $240–280 Note: Industry estimates — actual pricing depends on OEM contracts and order volumes.pic.twitter.com/9g2ZfRjeNr
— Abhishek Yadav (@yabhishekhd) October 10, 2025
Analyzing TSMC’s Price Increases and Their Ramifications
Recent reports suggest that TSMC intended to raise prices for its 3nm ‘N3P’ wafers, with costs approximating $25, 000 and $27, 000 per wafer for the older ‘N3E’ and ‘N3P’ nodes respectively. Qualcomm and MediaTek had already encountered a 24% price hike prior to these announcements, indicating challenging market conditions moving forward.
As for the projected pricing for 2nm wafers, estimated to remain at $30, 000, this strategy could significantly impact Qualcomm’s pricing structure for the Snapdragon 8 Elite Gen 6, especially if Samsung does not integrate into their supply chain. Analyzing these dynamics is essential for anticipating future trends in smartphone pricing.
For ongoing updates and insights into Qualcomm’s developments, you can check the source shared by Abhishek Yadav on Twitter: Abhishek Yadav.
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