Qualcomm's chip price hike signals cost pressures and potential device price increases

Qualcomm plans to raise chip prices from September 1, citing rising costs across the semiconductor supply chain, which could lead to higher prices for smartphones, tablets and wearables into 2027.

Qualcomm plans to raise the price of its chips from September 1, a move that is likely to hit smartphone makers first and could add fresh pressure to handset prices later this year and into 2027. The company’s chief executive, Cristiano Amon, said in an interview with CNBC that the increase is being driven by higher costs across the semiconductor supply chain, including manufacturing, assembly, testing, advanced packaging and memory.

The timing follows a weaker quarter for Qualcomm’s handset division. The company reported a 20% year-on-year fall in smartphone revenue in its fiscal third quarter, with sales of mobile chips worth $5.1 billion. According to Qualcomm, the industry is facing a temporary but severe rise in input costs, together with supply constraints that have affected key components.

TechSpot reported that the increase is expected to be in double digits and may extend beyond smartphones to tablets, wearables and some laptops. Android Central said the cost rise could ripple through the Android market, where major manufacturers including Samsung, OnePlus, Xiaomi, Honor and Motorola depend heavily on Qualcomm’s Snapdragon processors. That could make late-2026 and 2027 device launches noticeably more expensive, even if promotional discounts soften the impact at retail.

The broader backdrop is a strained technology supply chain. Industry reports have pointed to a memory shortage and stronger demand from artificial intelligence data centres, both of which are pushing up component prices. T3 reported that Qualcomm is also preparing a new generation of premium chips built on a more advanced manufacturing process, while rivals such as MediaTek and Samsung’s Exynos line may benefit if device makers look for cheaper alternatives. Even so, Snapdragon remains a central part of the premium Android market, which limits how quickly buyers can shift away from Qualcomm. Amon also said Qualcomm expects smartphone chips to account for only about half of revenue by 2029, as it expands further into data centres and automotive systems.