Qualcomm to release Snapdragon 7 Gen3 for cost-effective smartphones

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Qualcomm to release Snapdragon 7 Gen3 for cost-effective smartphones
Credit: © Reuters.

SAN DIEGO - Qualcomm (NASDAQ: QCOM ), a leading semiconductor and telecommunications equipment company, is set to introduce its latest mid-range processor, the Snapdragon 7 Gen3 chip. This new addition to Qualcomm's chipset lineup is expected to offer a balance of performance and affordability, tailored for smartphone manufacturers that are currently grappling with cost constraints.

The Snapdragon 7 Gen3 chip is produced using Taiwan Semiconductor Manufacturing Company's (TSMC) advanced 4nm process. Although it may not surpass the performance of its predecessor, the Snapdragon 7+ Gen2, the new chip is strategically positioned to appeal to a segment of the market that values efficiency and cost-effectiveness. The Snapdragon 7+ Gen2 has been utilized in select models such as the Redmi Note 12 Turbo and Realme GT Neo5 SE, featuring a robust CPU and integrated Adreno 725 GPU.

In contrast, the upcoming Snapdragon 7 Gen3 includes a prime core clocked at 2.63GHz, three Cortex-A715 performance cores at 2.4GHz, four efficiency cores at 1.8GHz, and an Adreno 720 GPU. This configuration indicates Qualcomm's shift towards providing a processor that maintains adequate performance while prioritizing energy efficiency.

Despite the high-quality offerings in Qualcomm's Snapdragon 7 series, its adoption has been limited due to pricing challenges. Many original equipment manufacturers (OEMs) have opted for either the higher-end Snapdragon 8 series or MediaTek's more budget-friendly options. However, industry insider Digital Chat Station revealed that Xiaomi’s Redmi sub-brand might be among the first to integrate the new Snapdragon 7 Gen3 into their devices, with expectations set for a release in the first quarter of 2024. It is yet to be determined if this launch will be global or confined to China.

Qualcomm's move to release the Snapdragon 7 Gen3 aims to increase its influence in the next generation of smartphones by offering a processor that meets the needs of mid-range device manufacturers without compromising on technological advancements. The use of TSMC's efficient 4nm process could be a game-changer for the chip's market reach and performance in an increasingly competitive industry.

InvestingPro Insights

InvestingPro's real-time data and tips offer valuable insights into Qualcomm's financial health and market position. With a market capitalization of 137.85B USD and a P/E ratio of 19.19 as of Q4 2023, Qualcomm's financial stability is evident. The company has also shown a strong return on assets of 14.46% in the last twelve months of Q4 2023, demonstrating its effectiveness in using its assets to generate earnings.

InvestingPro Tips highlight that Qualcomm has a history of yielding a high return on invested capital, which is a strong indicator of the company's profitability and efficiency. Additionally, the company has maintained its dividend payments for 21 consecutive years, indicating a consistent return for its shareholders.

InvestingPro offers many more insights and tips for investors. For instance, it provides data on Qualcomm's revenue growth, gross profit margin, and other key financial metrics. It also offers tips on the company's industry position, debt level, and trading multiples. These insights can help investors make informed decisions about their investments in Qualcomm.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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