Following Qualcomm’s itinerary, the company will release the new generation Snapdragon 875 SoC at the end of this year. According to recent reports, the price of the SD875 will increase sharply. The report claims that it will jump from $220 to $260. However, Pan Jiutang, a partner of the Xiaomi Industry Investment Department, said that the price will not increase. Furthermore, he believes that if there is to be a change, it will be a reduction in the price of older models.
According to Jiutang, the rumor is largely inconsistent. Initially, the Weibo user said the Snapdragon 875 will sell for $220. However, this value increases to $250/$260 after reports claim that the SD875 will be $100 more expensive than the SD865. There are reports that the Snapdragon 865 SoC current price is about $150 – $160.
Pan Jiutang is quite confident that there is no reason for the price hike. In fact, there is a reason for its price to fall. According to him, a certain flagship of a Korean mobile phone manufacturer is not selling well. This flagship uses a Snapdragon 8 series chip and this will force Qualcomm to reduce the price. The competition is intensifying and MediaTek is doing a very good job. This year the price of 5G chips has dropped a lot relative to the end of last year.
Snapdragon 875 prices can not rise when the SD865 and others are falling
Although he did not mention the Korean manufacturer, we know that he is most likely referring to Samsung. From his point of view, it seems that the Samsung Galaxy flagship series is not performing as expected. Samsung is a major customer and its performance can significantly affect the price. Pan Jiutang is insinuating that Samsung Galaxy flagship performance is dragging down the price of the Snapdragon 865. Thus, there is no basis for the spike in the price of the Snapdragon 875 except Qualcomm is willing to lose some orders. However, Pan Jiutang did not mention the specific price of the SD865 or 875 SoC. He only said that the price of 5G chips this year has fallen a lot from the end of last year.
In all, looking at the entire rumor, it appears that Pan Jiutang is on the right track. There is no mention of the price trend of the Snapdragon 875. For him, it is impossible for the Snapdragon 875 price to increase by more than $100 relative to SD865. However, whether the final price rises or falls is actually not clear. Furthermore, the current price reduction of the Snapdragon 8 series is not necessarily related to the price increase of the Snapdragon 875.