Key facts
- Qualcomm will raise prices by a double-digit percentage.
- The price increase will apply to products shipped after September 1.
- The company cited rising supplier costs as the reason for the hike.
- Qualcomm is seeking alternative components from new suppliers.
- The move comes amid pressure in the smartphone market and a memory chip shortage.
Qualcomm, a major smartphone chipmaker, has notified its customers of impending double-digit price increases due to escalating supplier costs. The company stated it can no longer absorb these rising expenses and is exploring alternative components from new suppliers. These price hikes are scheduled to take effect for products shipped after September 1.
The move by Qualcomm occurs as the company navigates challenges within the smartphone market, including a memory chip shortage and a redirection of investment towards AI infrastructure. Reports suggest that the flagship Snapdragon 8 Elite Gen 6 processor could see a price jump to over $300, a notable increase from the previous generation's $240-$280 range. The broader semiconductor industry has experienced a 10-30% rise in bill-of-materials costs during 2025-2026, largely driven by memory chip price inflation.
Despite these pressures, Qualcomm has set an ambitious fiscal 2029 revenue target of $40 billion for its non-handset markets, signaling a strategic pivot towards AI, automotive, and data center sectors. While the price increases may impact Qualcomm's stock, MediaTek remains its primary competitor in the Android processor space, though it has not consistently matched Qualcomm in the premium tier.