In a previous research study, technological analysts predicted that the iPhone 15 Pro series would cost more since it was completely upgraded. The iPhone’s most recent price increase occurred in 2017 with the release of the iPhone X. Since the introduction of the iPhone Pro series, it is equally priced ($999) as the iPhone X in the US. Since entering the Chinese market, the iPhone series will see price increases of varying degrees almost every year. However, the overall price of an iPhone hasn’t gone up all that much lately. Instead, when the local mobile phone business saw a period of expansion, a separatist party began to assault the high-end sector.
The Redmi series, which cost 799 yuan ($116), destroyed the domestic market for counterfeit phones very early in the history of Chinese mobile phones. Additionally, the Xiaomi series, which costs 1,999 Yuan ($290), caught several international firms off guard. Yet, given the market for mobile phones’ continued growth and demand, even “moderate” mobile phones are obviously unable to meet the high expectations of more users.
Another reason why the iPhone was able to entirely dominate the high-end market on its own is due to this. The iPhone’s better, independently designed hardware and software, which together form a rock-solid moat, have wildly drawn consumers from all over the world.
THE FLAGSHIP AGENDA INCLUDED CHINESE BRANDS
It appears to be the “Android option” wherever Chinese businesses concentrate their efforts. This is due to the fact that there are much more Chinese Android phones than non-Chinese. In the market for premium smartphones worldwide, Apple and Samsung were almost alone. Chinese businesses quickly learned, though, that they were really “assemblers” without exclusive technology. They understood that the majority of the money in the mobile phone sector is leaving China. As a result, they gradually added the top Chinese smartphones to their agenda.
The pricing of these phones reflect the idea that flagship mobile phones are quite expensive. Before reaching 10,000 yuan ($1,453), it went from 1999 yuan ($290) to 3999 yuan ($581), then to 5999 yuan ($872), and so on. This is the eventual outcome of Chinese mobile phones’ combined influence on the high-end market. The cost of smartphones is going up, but many people are beginning to question if it is truly worth spending so much money on a Chinese flagship phone.
These uncertainties were one of the difficulties high-end Chinese mobile phones encountered. Due to the invasion and repression of international high-end brand models, Chinese businesses originally could only capture a portion of the mid- and low-end markets. Yet they are now gradually seizing control of the elite discourse.
ADVANCED TECH
Mobile phones must have their own unique technology in order to be referred to as flagships. There must be some internal adjustments; stacking the hardware is not the answer. This implies that these gadgets will be more expensive.
Moreover, it is true that more companies are beginning to create their own technologies, from IC chips to mobile phone chips. To create a new track, it is essential to further integrate hardware and software. High-end Chinese models have just just begun to emerge. Due to the high expenditures of labour and R&D associated with the introduction of these cutting-edge technologies, the prices of top-end models have practically quadrupled in only a few years.
Think about the processors in cell phones. The best foundry in the world right now, TSMC, just introduced the 3nm process technology. Apple, Intel, Qualcomm, MediaTek, and Intel have already booked TSMC’s production capacity for the next 23 to 24 years, despite the fact that the semiconductor market is growing more depressed. The foundry sector, which is still seeing growth at TSMC, is now benefiting from technological leadership.
As a result, TSMC’s foundry costs have now reached record highs, and the cost of a 3nm 12-inch wafer is now more expensive than the previous high of 20,000 US dollars. What sort of a concept is this? In comparison to a 12-inch wafer’s estimated area of 70659 square millimetres, a 3nm chip has a surface area of about 70 square millimetres. Assuming TSMC has a 100% yield rate and no scrap waste, only 1,000 chips can be cut.
INCREASE IN CHIP COST
Mobile phones won’t become more affordable due to the chip industry trend. The fact that TSMC is far ahead is bad for the competition. At 90%, TSMC’s 3nm yield rate is already quite high. There are allegations that the 3nm yield rate for Samsung is under 20%. If TSMC’s foundry price of 20,000 US dollars can cut 700 or 800 chips, the foundry charge per chip might be as high as $30.
As a result, the price of 3nm process chips will eventually exceed $150, with some of the expense being borne by customers. The foundry costs at TSMC have increased over time, from just $2,000 for 90nm circuits in 2004 to $6,000 for 10nm devices in 2016. $16,000 has already been reached.
As a result, TSMC’s foundry costs have now reached record highs, and the cost of a 3nm 12-inch wafer is now more expensive than the previous high of 20,000 US dollars. What sort of a concept is this? In comparison to a 12-inch wafer’s estimated area of 70659 square millimetres, a 3nm chip has a surface area of about 70 square millimetres. Assuming TSMC has a 100% yield rate and no scrap waste, only 1,000 chips can be cut.
POWERFUL FLAGSHIPS ARE MANY IN ANDROID MOBILE PHONES.
With their own R&D skills, Chinese firms have recently intensified their drive for the high-end market. Whether it was the Xiaomi MIX, the full-screen era’s biggest surprise, or the vivo NEX and OPPO Find X, which subsequently offered fresh approaches. China is doing fairly well with its mobile devices.
At the same time, the continual advancements in imaging technology and charging capacity in Chinese models are a clear illustration of recent domestic technological advances. Even if there are still certain shortcomings in the present models, domestic high-end models are currently in the ascendant stage, and the future scenario will become increasingly clear.
