Qualcomm and MediaTek are continuing their preparations at full speed for their next-generation processors, which they will launch next year. However, both major manufacturers are facing significant challenges due to rising production costs. In addition to the high fees demanded by TSMC for its 2nm process technology, the sharp increases in DRAM prices are directly impacting the companies’ plans. Recent claims suggest that due to rising LPDDR6 RAM costs, this new, faster memory technology will only find its way into high-end flagship processors.
Cost shock for Qualcomm and MediaTek: 2026 phones will be expensive
According to reliable leaks shared on Weibo, a source from Digital Chat Station suggests that only “Pro-level” chipsets will support LPDDR6 RAM next year. This suggests that Qualcomm will launch its Snapdragon 8 Elite Gen 6 processor in two different versions. The leaks indicate that Qualcomm’s Pro variant will differentiate itself from the standard model with faster memory support and a more powerful GPU. MediaTek, on the other hand, appears poised to continue focusing on a single variant with the Dimensity 9600. The fact that Chinese memory manufacturers are also preparing for mass production may provide companies with some leeway in price negotiations in the future.
The biggest factor in the cost picture is manufacturing technology. TSMC’s 2nm wafers are expected to cost significantly more per component, around $30,000. This will force chipset manufacturers to either reduce their profit margins or pass on significantly higher prices to their smartphone partners. Rumors suggest that Qualcomm and MediaTek will utilize TSMC’s more advanced N2P architecture to gain a performance advantage over Apple, while Apple will stick with its standard N2 technology for the A20 series. While the N2P architecture only offers a 5% performance increase, manufacturers appear willing to pay this high price to surpass Apple.
Industry reports predict that memory prices will only begin to ease in 2027. This means that smartphones may experience some relief in the Snapdragon 8 Elite Gen 7 and Dimensity 9700 era. However, flagship devices in 2026 will be negatively impacted by both rising LPDDR6 RAM costs and expensive production processes. Unfortunately, consumers may need to be prepared for higher price tags during this transition.
These cost increases in the tech world directly and drastically shape the prices of phones reaching the end user. The fact that these small performance differences, especially in the hardware, are reflected so significantly in the costs creates a striking picture. What are your thoughts on rising smartphone prices and rising hardware costs? How much will the highest-end processor and RAM performance in your next phone be a determining factor for you?
