Qualcomm, Roku raise prices as memory chip shortage deepens

The global memory chip shortage tightened its grip on the consumer electronics industry on Friday, as Qualcomm ↘ 2.64% informed customers of double-digit price increases and Roku ↗ 0.09% raised prices on its streaming devices by as much as 50 percent — the latest signs that the AI data center boom is reshaping costs for everyday gadgets.

Qualcomm and Roku Pass Costs to Consumers

Qualcomm sent a letter to customers on Friday announcing that price hikes will take effect for products shipped after September 1, Bloomberg News first reported. The chipmaker told customers it could no longer absorb rising supplier costs and had sought alternative components from new suppliers without success. Reuters Thomson Reuters Corporation ↗ 0.05% could not independently verify the report. Qualcomm is set to report third-quarter results on July 29.stocktitan+1

The same day, Roku confirmed price increases across its streaming hardware lineup. The Roku Ultra now carries a $150 suggested retail price, up from $100, while the Roku Streaming Stick rose to $40 from $30. A Roku executive told The Desk that the company "made the tough decision to raise prices on its streaming hardware to address shortages in computer memory and other components caused by the artificial intelligence rush". The price hikes come just weeks after Apple ↗ 0.39% raised prices on its MacBooks and iPads, citing similar component supply constraints.cnbc+1

AI Infrastructure at the Root

The shortage stems from memory manufacturers redirecting production capacity toward high-bandwidth memory for AI data centers, which commands higher margins than conventional DRAM used in consumer devices. Samsung, SK Hynix, and Micron ↘ 2.52% have shifted capacity away from traditional enterprise and consumer memory products to serve hyperscalers like Meta ↗ 2.90%, Google Alphabet Inc. ↘ 0.96%, and Microsoft ↗ 0.17%.cnbc+2

Memory pricing is expected to rise 40% to 50% quarter-over-quarter in Q3, with another 30% to 40% increase projected for Q4, according to memory consultant Ethan Tan cited by Jefferies analysts. DRAM prices already surged roughly 110% in Q1 2026.businessinsider+1

Budget Devices and PCs Bear the Brunt

The pain is concentrated at the low end of the market. Research firm Omdia projects a 22% year-over-year decline in shipments of smartphones priced under $400 this year, driving a 12% contraction in the overall global smartphone market. IDC forecasts PC average selling prices will rise 18.3% in 2026, with global shipments declining 11.3% for the full year. IDC research manager Jitesh Ubrani said the firm does not expect "any relief to the memory shortage situation before the end of 2027".idc+3

Gartner projects PC prices will increase 17% and smartphone prices will grow 13% compared to 2025 levels, while Synopsys ↘ 1.62% CEO Sassine Ghazi told CNBC in January that the chip crunch is expected to persist through 2027.cnbc+1

"In 2026, there's going to be issues around semiconductor supplies, and it's going to affect everyone," Samsung's Wonjin Lee told Bloomberg earlier this year.networkworld