In recent years, the cost of manufacturing smartphones has been rising, and now hand may be one of the reasons why this is happening. architecture creator HAND intends to change the way manufacturers are charged for the use of their cores, with the cost based on the total cost of the devices.

Smartphones can get more expensive

The British company is currently outsourcing the use of its technology to chip makers such as Qualcomm This Samsungwho pay royalties to use your architecture and kernels bark on their chipsets. At the same time, the company’s profit depends on each sold chip.

But the leak Tech_Revevia WCCFTech, states that hand intends to stop charging per order chipset cost royalties from the total cost of each smartphone that uses its technology. This will force cell phone makers to choose between passing on the amount charged to users for using the ARM architecture or cutting their profits.

Credits: Samsung Disclosure

This increase in product costs could be a problem for manufacturers as the global economy struggles and rising device prices could mean fewer devices sold.

In accordance with WCCFTechthis decision to change the method of collecting fees may be taken due to the fact that British company plans IPO later that year on the New York Stock Exchange. The main clients of the company have already been informed about possible changes in the order of tariffication of clients.

But an insider claims that apple this change cannot be affected as the Cupertino giant has a special agreement with hand. With these changes, more companies will have to negotiate better contracts for the use of cores. bark and architecture HANDbut if it doesn’t, the devices android may rise in price in the future.

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Via: WCCFTech Source: Tech_Reve

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