The A17 Pro is Apple’s first 3nm SoC found only in the iPhone 15 Pro and iPhone 15 Pro Max and mass produced on TSMC’s next-generation architecture. Naturally, the improvements the latest silicon carries compared to the A16 Bionic is sufficient to make it costlier than the latter, but by how much? Well, according to the latest estimates, there is a 27 percent cost increase, but that is not the surprising part, as even the Snapdragon 8 Gen 2 announced by Qualcomm in 2022 is pricier than Apple’s latest and greatest iPhone silicon.
A17 Pro costs approximately $130 to make, but despite being produced on the 3nm process, the Snapdragon 8 Gen 2 is 23 percent more expensive
Previous estimates from Nikkei stated that the A16 Bionic cost Apple $110 to make, with the A17 Pro priced slightly higher, at $130 apiece. It is remarkable that despite being fabricated on TSMC’s 3nm process, along with facing yield issues, Apple still brought in just a $20 difference between the two chipsets. It is possible that the technology giant was able to bring this cost down by increasing shipment volumes. Seeing as how the iPhone 15 Pro and iPhone 15 Pro Max have been in high demand post-launch, it only makes things easier for Apple when ordering more A17 Pro shipments.
What is most interesting about these estimates is that the $130 pricing estimate of the A17 Pro is still cheaper than the Snapdragon 8 Gen 2, which Qualcomm’s partners paying $160 per unit to use in their flagships. However, while one would assume that Qualcomm pursues greedy business practices, it is important to note that the A17 Pro is only used in Apple’s iPhone 15 Pro and iPhone 15 Pro Max and not sold to any other company. In comparison, the Snapdragon 8 Gen 2 is sold to Qualcomm’s partners and is found in millions of Android smartphones.
Since the chipset maker exists to make money, it needs to charge its partners a higher sum, and that can mean that the Snapdragon 8 Gen 2’s price will end up being more than the A17 Pro. This might be acceptable to some, but when you factor in that the Snapdragon 8 Gen 3 is rumored to be more expensive than the Snapdragon 8 Gen 2, it will only make things more difficult for Qualcomm’s partners as far as adjusting their margins go.
If you want to read Nikkei’s entire report, make sure to click on the link below, and also be sure to check out our findings on the iPhone 15 Pro Max, which costs $558 to make, meaning that the A17 Pro may have contributed a little to this 12 percent increase compared to the iPhone 14 Pro Max.
News Source: Nikkei