Qualcomm made the inclusion of a 5G modem on the Snapdragon 865 mandatory during
launch in December 2019 and since then smartphone OEMs have been struggling to
offer affordable flagships with many crossing the INR 50,000 mark in India.

Well, if you have been hoping the Snapdragon 875 next year will lower the prices
again, there?s news that you won?t be very happy to hear.

Based on information from South Korean publicationIT Home(reported first
[https://www.gizmochina.com/2020/06/28/xiaomis-2021-flagships-will-be-pretty-expensive-no-thanks-to-qualcomm/] ), the Snapdragon 875 will be more expensive than the current crop of Snapdragon
865 SoCs. A considerable 50% increase in price is expected and a forum post
claims that the Snapdragon 875 SoC itself will cost OEMs $130 (approximately INR
9,800), as compared to Snapdragon 865?s $85 (approximately INR 6,400) price tag.

The entire package, however, is expected to go up to $250 (approximately INR
18,900), where the Snapdragon 865 is being sourced at $160 (approximately INR
12,000). The forum post claims this is the price Xiaomi will be buying the
chipsets at, from Qualcomm.

It is worth noting though that the final unit price of the chipsets will depend
on the volume ordered. Considering the number of flagship Android phones Xiaomi
launches and sells in a year, it?s fair to guess Xiaomi is one of the largest
customers for the chip.

The higher $250 price tag is likely what OEMs will have to pay since the company
has made the purchase of the entire chipset mandatory, including the 5G modem
and the RF components.

With Qualcomm having a near-monopoly in Android flagship chipsets, the price of
premium smartphones is only expected to shoot up drastically in 2021, if the
report is to be believed. This could force OEMs to limit the number of flagship
devices, in favour of smartphones powered by the 7-series SoCs. Or opt for
silicon from MediaTek and Samsung instead. With the latter finally foregoing the
use of proprietary Mongoose cores, we might just see an Exynos chipset go toe to
toe with the next Snapdragon 8-series SoC.