Qualcomm price increase reportedly starts after September 1 shipments
Bloomberg says Qualcomm told customers double-digit hikes are coming, raising the risk of pricier phones, PCs and smartglasses.
By Hana Yoshida · Markets Reporter
3 min read
A Qualcomm price increase is set to hit products shipped after September 1, Bloomberg reported, citing a letter the chipmaker sent to customers on Friday. The reported double-digit hikes matter because Qualcomm parts sit inside a wide range of consumer devices, including phones, computers and wearable hardware.
According to Bloomberg, Qualcomm told customers it plans to raise prices by a percentage in the double digits. The company said in the customer letter that supplier costs had climbed to a point where it could no longer absorb them, Bloomberg reported.
Qualcomm also said it had tried to use alternate suppliers before deciding to raise prices, according to the report. The Verge reported that Qualcomm did not immediately respond to a request for comment.
Why is Qualcomm raising prices?
Bloomberg reported that Qualcomm linked the planned increase to higher costs from its own suppliers. The report comes as component shortages continue to push up prices across consumer electronics.
Qualcomm makes chips used in many devices, so a higher price for those parts can affect the final cost of finished products. Device makers may choose to absorb some of the increase, but shoppers could see higher prices if manufacturers pass those costs along.
Which devices could be affected?
Bloomberg said the increases are likely to have a broad effect, especially in smartphones. Qualcomm chips are used in devices ranging from Samsung’s new foldables to upcoming smartglasses, according to The Verge.
The company’s chips also figure into Qualcomm’s push into lower-cost Windows computers. Earlier this year, Qualcomm promised that one of its new chip platforms would help deliver Windows PCs priced at $300, The Verge reported. Higher component pricing could make that target harder for device makers if they rely on affected Qualcomm parts.
The price change does not mean every product using Qualcomm chips will immediately cost more. The reported start date applies to products shipped after September 1, and retail prices depend on decisions made by the companies that build and sell finished devices.
How does this fit into broader tech price increases?
Qualcomm is not the only tech supplier or device company dealing with higher component costs. The Verge has reported price increases affecting Xbox consoles, Raspberry Pi boards, most Apple devices, and smartphones from Samsung and Google.
Some products have faced more than higher sticker prices. The Verge has also reported examples of devices shipping with lower specifications while costing more, as well as products being canceled or delayed amid the same pressure from component shortages.
For consumers, the practical effect is uncertainty around upcoming device pricing. If manufacturers pass along Qualcomm’s reported double-digit increases, phones and other electronics that depend on its chips may become more expensive after the September 1 shipment cutoff.
This story draws on original reporting from The Verge.