News in Short

• Qualcomm is reportedly planning to increase Snapdragon chip prices from September 1.
• The move could make Android smartphones, tablets and wearables more expensive.
• Qualcomm says rising memory and semiconductor costs are hurting margins.
• The company reported a 20% year-on-year decline in handset chip revenue in Q3.
• Brands such as Samsung, Xiaomi, OnePlus and Oppo could feel the impact.

Buying an Android smartphone could soon become more expensive. Qualcomm is reportedly preparing to increase the prices of its Snapdragon processors, a move that could push up the cost of smartphones, tablets and wearables powered by its chips.

The reported price hike comes as the chipmaker grapples with rising component costs and a prolonged memory shortage that continues to affect the semiconductor industry.

Snapdragon chips could cost more from September

According to reports, Qualcomm plans to increase Snapdragon chip prices for products shipped from September 1.

During the company’s latest earnings call, CEO Cristiano Amon reportedly said Qualcomm would use price increases as a short-term measure to protect its profit margins while improving its supply chain.

Although the company has not disclosed the exact increase, industry reports suggest the hike could be in the double-digit percentage range.

Why is Qualcomm increasing prices?

Qualcomm says the semiconductor industry continues to face rising costs across wafer production, advanced packaging, assembly, testing and memory components.

The company also noted that many consumers are choosing last year’s flagship smartphones or lower-priced premium devices instead of the latest high-end models because of higher memory prices.

These market conditions have affected Qualcomm’s profitability despite healthy overall demand for its products.

Handset business sees sharp decline

Qualcomm’s handset business reported a 20 percent year-on-year decline in revenue during the third quarter, with sales falling to $5.1 billion. The company attributed the slowdown to weaker demand in China and higher memory costs, which continue to pressure the smartphone market. Despite the decline, Qualcomm said its broader business remains healthy as it works to navigate rising manufacturing expenses.

Android brands could pass on the extra cost

If Qualcomm raises Snapdragon prices, smartphone makers are likely to pass at least part of the increased cost on to consumers.

Brands such as Samsung, Xiaomi, OnePlus, Oppo, Realme and other Android manufacturers rely heavily on Snapdragon processors across their premium and mid-range devices.

The timing is also significant because Qualcomm is expected to unveil its next-generation Snapdragon 8 Elite Gen 6 chipset at the Snapdragon Summit later this year. The processor is expected to power upcoming flagship smartphones, including devices from Xiaomi, OnePlus and Samsung.

While Qualcomm has not officially confirmed the final pricing, the reported increase could make flagship Android smartphones even more expensive at a time when component costs continue to rise across the industry.