The Pixel 6 initiated Google’s Tensor chipset journey, with immediate successors being used in the newer models. For several generations, the Mountain View giant has been severely criticized for favoring its chipsets over Qualcomm’s, which has led to these expensive flagships being significantly slower than the competition, with multiple overheating reports that pop up every once in a while. Google will eventually tame the thermal aspect of its custom silicon by switching to TSMC’s 3nm N3E process for the Tensor G5, but according to leaked documents, the company will likely never partner with Qualcomm as it wants to continue making its smartphone business sustainable.
New leak reveals that the Tensor’s pricing target should not exceed $65 to make the Pixel business a sustainable one
No one can deny that the Snapdragon 8 Elite is Qualcomm’s best chipset launch to date, boasting a new manufacturing process and capabilities that rival or even beat Apple’s A18 Pro. Sadly, its rumored price of $240 per unit will force phone manufacturing partners to either heavily reduce their profit margins or to make compromises elsewhere in the overall configuration to maintain a positive cash flow.
For Google, if it is a choice to ensure a sustainable business for its Pixel lineup over using Qualcomm chipsets for superior performance and efficiency in its devices that might not last a few launches due to the advertising giant bleeding millions in chipset expenditures, we can see why Google sticks with the first approach. The technology behemoth is notorious for shuttering its ventures that are not performing well financially, with these closures happening in just a couple of years.
The firm’s desire to achieve a low Tensor pricing target highlights that Google is deadly serious about the Pixel family. According to Android Authority, the new financial goal is to bring each Tensor unit’s price down to $65. This is definitely a Herculean task and could be why Samsung was Google’s foundry partner for several years. TSMC might be at the forefront of the silicon race, but its wafer costs will not see a reduction anytime soon, which means a bigger bill for its new client once the 3nm Tensor G5 shipments arrive for the Pixel 10.
At the same time, Google must maintain some competition with its rivals, even if it means introducing a slower Tensor chipset, which puts the company in a severely difficult position. We applaud it in wanting to ensure that the smartphone market remains competitive with annual Pixel releases, and given that it is not easy to mass produce even semi-custom silicon, perhaps we should not give Google a tough time over its decisions.
News Source: Android Authority