Qualcomm is about to raise prices and that’s bad news for everyone
Qualcomm has announced double-digit price increases for its chips starting in September, citing rising costs from suppliers. This move is expected to increase the cost of consumer electronics, including smartphones and PCs, as manufacturers pass the expenses to consumers.
Why it matters
As a dominant chip supplier, Qualcomm's pricing strategy has a direct impact on the affordability of global consumer technology and inflation in the electronics sector.
Qualcomm sent a letter to customers on Friday warning of plans to increase its prices by “a percentage in the double digits,” Bloomberg reports. The price hikes will go into effect starting with products shipped after September 1st.
Qualcomm claims it has “exhausted its ability to absorb higher costs from suppliers,” as ongoing component shortages continue to drive up prices. The company also said it attempted to source components from alternate suppliers prior to announcing the price hikes.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in