Qualcomm to Lift Chip Prices in September as Memory Costs Bite

Qualcomm says it will raise product prices from September 1st, adding pressure to phone costs amid a memory-driven supply squeeze.

Qualcomm plans to raise prices on its products starting September 1st, 2026, CEO Cristiano Amon said, as reported by CNBC. The increases were rumored to be in the double-digit percentages, though the exact figure is unconfirmed. The move follows a rough stretch for the company's handset business, which saw revenue fall 20% year over year to its lowest level since 2021.

Qualcomm blamed the drop on unprecedented memory pricing increases and supply constraints. The pressure is showing up across the chain: CFO Akash Palkhiwala said some device makers are sticking with prior-generation Qualcomm chips because component costs have climbed. Qualcomm also expects a materially lower modem share in the upcoming iPhone launch.

This is a setback for connectivity abundance. Smartphones are the primary way most people get online, and when the chips and memory inside them get more expensive, that cost eventually reaches buyers. Higher component prices tend to gate the low and mid-range devices hardest, precisely the phones that widen access rather than serve those who already have one.

The percentage remains rumored, and the picture is not entirely one-directional: Qualcomm is diversifying away from phones, projecting only half its revenue from handsets soon and a third by 2029, and it announced a decade-long chip deal with BMW. Those projections are the company's own. Whether OEMs pass the hike through or absorb it, and how memory pricing moves, will shape what phones cost.

Source: The Verge