Qualcomm is planning on raising prices on its chip products for customers, and will begin charging more for its products before the end of the Summer. The details were sent by Qualcomm to its customers in a letter, according to a recent report from Bloomberg.
Qualcomm doesn’t explicitly mention exact figures or pricing for the increase in cost that its customers will have to pay. However, Bloomberg’s report mentions that Qualcomm will be raising prices by a percentage in the double digits. Qualcomm reportedly says that these higher costs are a result of the higher prices on components needed for the manufacturing of its chips. The company also states that it is no longer able to absorb the higher prices it’s paying to suppliers for these necessary components.
According to the report, Qualcomm has tried to avoid increasing the price on its chips before telling its customers. This included looking for alternate suppliers to meet its needs.
Qualcomm will be raising prices on chips for its customers after September 1
Qualcomm is the latest in a line of manufacturers that are increasing costs due to shortages and higher prices on components. Samsung, one of Qualcomm’s biggest customers, raised prices on its recently announced Galaxy Z Fold 8, Galaxy Z Flip 8, and Galaxy Z Fold 8 Ultra. Both the Galaxy Watch 9 and Galaxy Watch Ultra 2 have gone up in price compared to previous models as well.
For Qualcomm, the company’s letter reportedly states that prices on chips will go up on shipments that go out after September 1. Qualcomm’s announcement comes just before it plans to hold its third-quarter earnings call on July 29, and about a week after it was reported that global smartphone shipments have hit their lowest point since 2013 due to rising memory costs, which has forced companies to raise prices on phones.
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