Qualcomm to raise prices by double digits starting Sept. 1

Qualcomm ↘ 2.64%, the world's largest maker of smartphone processors, informed customers on Friday that it will raise prices by a double-digit percentage for products shipped after Sept. 1, according to Bloomberg News, which reported seeing a copy of the letter sent to clients.investing+1

The San Diego-based chipmaker told customers that rising costs from suppliers forced the decision. The company said it had exhausted its ability to absorb increasing costs and had attempted to secure alternative components from new sources before resorting to the hike.investing

A Broader Industry Trend

Qualcomm's move follows a wave of price increases across the semiconductor industry in 2026. Infineon Technologies implemented its second price hike of the year on July 1, while Texas Instruments ↘ 2.84%, NXP Semiconductors ↘ 0.82%, and STMicroelectronics ↗ 0.58% all notified customers of price adjustments taking effect in June and July. Texas Instruments reportedly raised some prices by as much as 85% starting in April.trendforce+3

The pricing pressure traces in part to surging demand for memory chips used in AI data centers, which has consumed production capacity that would typically serve smartphones and other consumer devices. CNBC reported in December that the average selling price of smartphones in 2026 was expected to rise 6.9%, according to Counterpoint Research, driven by memory chip shortages.cnbc+1

Impact on Consumer Electronics

The ripple effects are already visible. China's smartphone shipments fell 4.3% in the second quarter to 66 million units, as many manufacturers hiked prices to reflect rising memory and component costs, according to Reuters citing research firm IDC.fidelity

Qualcomm itself flagged the memory shortage issue earlier this year. During its fiscal first-quarter earnings call in February, executives attributed a weaker-than-expected outlook to the global memory shortage, noting that data center demand was consuming capacity that would normally go toward smartphones. In its fiscal second-quarter earnings presentation, the company again highlighted that increasing demand for memory in AI data centers was driving uncertainty in memory supply and price increases.s204.q4cdn+1

Qualcomm shares dipped on Friday despite a midday spike following the Bloomberg report. The company is scheduled to report earnings on July 29.barchart+1