Qualcomm Raises Prices: Chip Costs to Increase by Double-Digit Percentage
Qualcomm has notified customers that it will increase chip prices by a double-digit percentage starting September 1. The decision follows the exhaustion of the company's ability to absorb rising supplier costs.
Qualcomm has notified its customers that it will increase the prices of its chips by a double-digit percentage starting September 1. This was reported by Bloomberg, which revealed a letter the company sent to its clients.
According to Qualcomm, the decision was made after the company exhausted its ability to absorb the rise in costs from suppliers against the backdrop of the ongoing component shortage. The company added that before making the decision, it sought alternative suppliers to mitigate the price increase.
This move may affect a wide range of electronic products, primarily smartphones. Qualcomm chips are used, among other things, in Samsung's flagship devices and in smart glasses. If device manufacturers pass the price increase on to the consumer, retail prices are expected to rise.
Qualcomm is not the only company raising prices amid the component shortage. In recent years, a series of electronic products have become more expensive, including Xbox consoles, Raspberry Pi computers, many Apple devices, as well as Samsung and Google smartphones. In some cases, manufacturers even reduced product specifications alongside the price increase, while other products were delayed or canceled due to supply difficulties. Qualcomm did not provide further comment after the report was published.
