A17Pro is Apple's first 3nm SoC, which is only used in iPhone15Pro and iPhone15ProMax. It is mass-produced using TSMC's next-generation architecture. Of course, the process improvements of the latest chip will certainly make it cost higher than the A16 Bionic, but how much higher? The latest estimate puts the cost at a 27% increase, but that's not surprising since even Qualcomm's 2022 Snapdragon 8 Gen 2 is more expensive than Apple's latest, most advanced iPhone chips.
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According to previous estimates by Nikkei, the manufacturing cost of the A16 Bionic is US$110, while the price of the A17 Pro is slightly higher, at US$130 per unit. It’s worth noting that despite being manufactured on TSMC’s 3nm process and facing yield issues, Apple managed to achieve a price difference of just $20 between the two chipsets. The tech giant may be cutting costs by boosting shipments. Since the iPhone 15 Pro and iPhone 15 Pro Max are in high demand after their launch, this will only make it easier for Apple to order more A17 Pro.
The most interesting thing is that the A17Pro’s price of $130 is still cheaper than the Snapdragon 8 Gen 2. When Qualcomm’s partners use the Snapdragon 8 Gen 2 in their flagship phones, each unit sells for $160. While one would think this is a greedy business move by Qualcomm, it must be noted that the A17 Pro is only used in Apple’s iPhone 15 Pro and iPhone 15 Pro Max and has not been sold to any other company. In contrast, Snapdragon 8 Gen 2 is sold to Qualcomm's partners and used in millions of Android smartphones.
Since chipset manufacturers exist to make money, they need to charge partners more, which could mean the Snapdragon 8th Gen 2 ends up being more expensive than the A17 Pro. That might be acceptable to some, but if you factor in that Snapdragon 8 Gen3 is rumored to be priced higher than Snapdragon 8 Gen2, adjusting profit margins will only become more difficult for Qualcomm's partners.