[Apple Shockwave](36) 'Once Again' Google's Smartphone Chip Slump

Google unveils latest smartphone 'Pixel 8' following Apple
Core chip 'Tensor G3' performance below expectations
Cannot compare with underwhelming Apple iPhone 15 Pro chip performance
Google sparks controversy by suddenly restricting performance test app installations
Case illustrating challenges in evolving latest smartphone semiconductor performance

Editor's Note[Apple Shockwave] is a content series that examines the upheaval caused by Apple entering the semiconductor market. You might wonder why Apple is involved in semiconductors. Apple is no longer just a company that makes smartphones and computers. After long efforts starting from its founder, the late Steve Jobs, Apple has designed world-class semiconductors used in mobile devices. If Intel was the leader in the PC era, Apple has become the top predator in the mobile era semiconductor ecosystem. Amid the global semiconductor supply chain crisis and massive investments in semiconductor production facilities, we will carefully examine the upheaval and prospects in the semiconductor market brought about by Apple Silicon to broaden our readers' insights. Apple Shockwave will visit readers every weekend. After more than 40 installments, it will be published as a book.

"Dad, there's nothing to see at the Google Store."

In the summer of 2021, Google, the king of search and the home of the Android smartphone operating system, opened its first offline store in Manhattan, New York. The author, who was working as a New York correspondent, visited this place with his children. Google purchased the Chelsea Market building, a famous tourist spot in Manhattan, and uses it as an office. The first Google Store was also opened here. In 2022, Google opened another offline store in Brooklyn, New York City.

Was the expectation too high? The displayed products were limited to Google's own smartphone 'Pixel' and an AI speaker. Google focused on emphasizing the Pixel's camera performance, but few visitors were around. Nearby, Samsung's flagship experience store 'Samsung837' also did not have many visitors, but it offers a wider variety of products than Google's store, making it more enjoyable to browse.

This area, known as the 'Meatpacking District,' also houses an Apple Store. It is the only place in the world where Apple, Google, and Samsung stores stand side by side. The store that attracts the most consumers is undoubtedly Apple.

Apple iPhone 15 Solves the Problem

The reason for mentioning Google is that while attention was focused on Apple's iPhone 15, Google quietly unveiled its latest smartphones: the Pixel 8 and Pixel 8 Pro.

Google Pixel 8 Pro.

Apple and Google's smartphones appeared around the same time, and the semiconductor technologies used in them are sharply contrasted.

Consumer reviews of the Apple iPhone 15 Pro, which features the latest 3-nanometer chip 'A17 Pro,' are mixed. Expectations for reduced heat generation and improved performance due to the manufacturing process evolving from 4nm to 3nm fell short. The anticipated significant increase in battery life and performance improvements with the 3nm process did not materialize. The performance improvement over the previous iPhone 14 was only slight.

In this process, Apple took an unusual step. Apple issued a statement directly addressing the heat issue, denying that the chip was the problem, which is rare for the usually proud company. Having experienced issues like 'Bendgate' and phone bending in the past, Apple judged this matter to be serious and responded swiftly, unlike before.

The heat issue was generally considered to have been somewhat resolved through an iOS update, as Apple mentioned. However, the prevailing opinion is that the iPhone 15 Pro still runs somewhat hotter than the iPhone 14 Pro. Most users report that while it feels a bit warmer during daily use, there are no significant problems.

Some speculated that Apple might impose performance limits on the chip to resolve the heat issue, but the improved version of the iPhone actually demonstrated better performance.

At this point, the issue should be viewed from an optimization perspective rather than a semiconductor or OS design problem. Apple expert analyst Ming-Chi Kuo, who is closely connected with chip manufacturer TSMC, also analyzed that this issue is not TSMC's fault. However, it is clear that the evolution to the 3nm process did not achieve the expected results. This means that the semiconductor companies' efforts to advance manufacturing processes no longer easily translate into dramatic performance improvements that win consumer favor.

The semiconductor industry focuses on fierce miniaturization progress from 5nm to 4nm, 3nm, and 2nm processes, but many consumers are more interested in the iPhone's grip, camera, and whether photos taken for Instagram look good than in the chip's performance.

Google's New Chip Sparks Only Controversy

Google is participating in the smartphone application processor (AP) competition led by Apple, Qualcomm, and Samsung.

Google's Pixel 8, which uses the latest chip, was released on October 4, 2023, about 20 days later than the iPhone 15. Google promoted that this phone uses a chip enhanced with artificial intelligence (AI) capabilities.

Google's Tensor G3

However, the performance of the Pixel 8, which Google ambitiously introduced, is close to disappointing. Apple's situation looks like a 'cute' problem compared to Google's.

The Google Pixel phone is the standard bearer of the Android camp. It uses pure Android OS. While Samsung's Galaxy S series is widely used, Pixel phones are the exclusive choice of a small group of enthusiasts.

Pixel has now evolved to its 8th generation. Whether Google can compete with the iPhone with the Pixel 8 could be an important milestone for the future direction of the Android camp.

The reason the 'Tensor G3' chip in the Pixel 8 is important is that it is manufactured by Samsung. Google's Tensor is based on Samsung's Exynos chip, and Samsung manufactures the chip. This is similar to the past situation where Apple used chips designed and produced by Samsung in the iPhone, iPhone 3G, and iPhone 3GS.

The performance of the much-anticipated Tensor G3 chip lags significantly behind Apple and Qualcomm. It is said to be at the level of the A14 chip used in the iPhone 12 released in 2020. It is analyzed to be slower than the Qualcomm Snapdragon 8 Gen 1, which was controversial for heat issues. Although the heat generation is said to have improved compared to the previous Tensor G2, it is still considered high. Battery performance is also a subject of controversy.

The performance of the Google Pixel 8 Pro falls significantly behind the Apple iPhone 15 Pro, which was released around the same time. The Pixel 8 Pro's performance is also inferior to the Samsung Galaxy S23 Ultra, which uses Qualcomm's chip.

This has sparked heated debate. Is the problem with Google's semiconductor design and phone heat dissipation design, or is it Samsung's manufacturing process? Since Samsung's 4nm process yield has improved, the analysis leans more toward Google's problem this time.

A bigger issue is that Google blocked the installation of the performance testing app 'Geekbench 6' on the Pixel 8. This was possible because Google operates the app store. This is a very unusual move. Why did Google make this decision? Both consumers and industry insiders speculate that it was to prevent poor performance from being revealed.

As the controversy spread, Google responded: "We did not prioritize speed or traditional performance in Tensor development. We aimed to enhance a new mobile computing experience. The Tensor G3 chip will pave the way for on-device generative artificial intelligence." This is not the answer consumers want. It sounds unconvincing.

Google attempted to shift production to TSMC but is unlikely to succeed as TSMC reportedly refused to produce Tensor G4 due to the small quantity Google requested.

Is there hope for Google's chip after all?