Qualcomm is set to roll out a broad price increase for its mobile chips, starting September 1, according to reports. The global mobile chip giant is currently finalizing pricing with customers worldwide, with flagship-tier chips expected to see a 10% to 15% jump, mainstream chips rising 5% to 7%, and entry-level chips seeing a modest 2% uptick.
This price hike applies not only to new orders after September 1 but also to existing orders scheduled for delivery on or after that date, which may face revised pricing or purchasing terms. The move follows Qualcomm's fiscal third-quarter 2026 earnings report in late July, where handset revenue plunged 20% year-over-year, marking the worst performance since 2021.
Qualcomm CEO Cristiano Amon stated during the earnings call, "Costs have risen, so prices will naturally follow." In a letter to customers, the company explained it has "exhausted its ability to absorb supplier cost increases," citing failed attempts to find alternative suppliers to lower component prices.
The cost pressures stem from two main sources: soaring memory chip prices due to AI data center demand squeezing consumer DRAM and NAND Flash supply, and rising advanced process costs. According to TrendForce, first-quarter 2026 generic DRAM contract prices surged 93% to 98% quarter-over-quarter, while NAND Flash contract prices jumped 55% to 60%. Additionally, the upcoming Snapdragon 8 Elite Gen 6 Pro, built on Taiwan Semiconductor Manufacturing's N2P process, could see single-chip prices exceed $300, with 2nm wafer costs significantly higher than 3nm.
For Android smartphone makers, this is a double blow. Rising Qualcomm chip prices directly inflate flagship bill-of-materials costs, while memory and storage components also climb. As a result, the typical starting price of Chinese flagship phones, previously around $620, is expected to collectively breach the $830 mark this year, raising the entry barrier for the high-end smartphone market.
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