SynopsisThe company told customers it could no longer absorb rising supplier costs and had sought alternative components from new suppliers, Bloomberg reported. The chipmaker has been grappling with mounting pressure in the smartphone market, which has been squeezed by a memory chip shortage as investment is redirected toward AI infrastructure.ReutersSmartphone chipmaker Qualcomm told customers it would raise prices by a percentage in the double digits due to rising costs, Bloomberg News reported on Friday, citing a letter sent to clients. Qualcomm sent the letter to customers on Friday, informing them that the price hike will go into effect for products shipped after September 1, the report said. The company told customers it could no longer absorb rising supplier costs and had sought alternative components from new suppliers, Bloomberg reported. Qualcomm declined to comment. Reuters could not independently verify the report. The chipmaker has been grappling with mounting pressure in the smartphone market, which has been squeezed by a memory chip shortage as investment is redirected toward AI infrastructure. Qualcomm is set to report its third-quarter results on July 29. ...moreElevate your knowledge and leadership skills at a cost cheaper than your daily tea.Subscribe Now
Qualcomm tells customers of double-digit price increases: Bloomberg - The Economic Times
The company told customers it could no longer absorb rising supplier costs and had sought alternative components from new suppliers, Bloomberg reported. The chipmaker has been grappling with mounting pressure in the smartphone market, which has been squeezed by a memory chip shortage as investment is redirected toward AI infrastructure.
TL;DRAI
Qualcomm raised prices double-digit from September 1 over unabsorbable supplier costs and memory shortage. Cost inflation signals capex rebalancing toward AI infrastructure—IT leaders must adjust hardware spending forecasts.
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