QUALCOMM PLANS DOUBLE-DIGIT PRICE RISE FOR PROCESSORS

Qualcomm has notified customers of plans to raise processor prices by a percentage in the double digits, effective from September 1, according to reports citing Bloomberg. The company sent letters to clients on Friday outlining the increase. Qualcomm stated it has exhausted its ability to absorb higher costs from suppliers and attempted to source components from alternative suppliers before announcing the price rise. The manufacturer said component shortages continue to drive up its own costs.

Qualcomm's chips power a significant portion of the smartphone market, including Samsung's Galaxy series and latest foldable devices, as well as Microsoft CoPilot+ personal computers and Meta's Ray-Ban smart glasses. The company's processors are predominantly manufactured by TSMC, which currently faces supply chain constraints. According to one account, Qualcomm's sales have declined this year as clients struggled to produce devices due to shortages, although the company posted revenue above forecast for the second quarter of 2026. The broader technology sector faces similar pressures, with component shortages driven by demand from artificial intelligence data centre buildouts affecting multiple manufacturers.

The price increases are likely to have widespread consequences across consumer electronics. Device manufacturers may pass increased costs to consumers, potentially raising prices for smartphones, personal computers and wearable devices. Qualcomm joins other companies implementing price rises; manufacturers of Xbox consoles, Raspberry Pi boards, Apple devices, and Samsung and Google smartphones have all raised prices in response to component shortages. Some manufacturers have simultaneously reduced specifications or delayed product releases.