Qualcomm announced it will raise chip prices by double digits from September 1 in response to widespread supply chain inflation, including higher costs for wafer fabrication, assembly, testing, advanced packaging, and memory materials [1, 2, 3]. CEO Cristiano Amon said, "Cost went up, prices are going to go up," emphasizing the direct impact on margins [1]. He added that consumer demand is shifting as memory price increases have caused a move toward lower-tier premium smartphones and older phone models [1].
The price hikes follow Qualcomm’s report of fiscal third-quarter 2026 results, where adjusted earnings per share of $2.21 and $9.95 billion in revenue met analyst expectations [1]. However, handset chip sales declined 20% year-over-year to $5.1 billion, reflecting a bottoming out in the Chinese market [1]. Automotive chip sales reached $1.59 billion in the quarter [1]. Qualcomm projects non-smartphone chip sales will make up 60% of revenue by next year, indicating a strategic shift [1].
For the current quarter, the company expects adjusted EPS between $2.05 and $2.25 on revenue ranging from $9.7 billion to $10.5 billion, slightly below analyst estimates of $2.36 EPS on $10.02 billion revenue [1].
The semiconductor price increases by Qualcomm and similar hikes announced earlier this year by MediaTek reflect continuing global shortages and rising manufacturing expenses that could raise the cost of end products and weigh on consumer demand [3]. Smartphone shipments fell for a second straight quarter in Q2 2026, declining 6.7% year-over-year according to IDC and 11% per Counterpoint, partly due to component price rises [3].
Cristiano Amon also noted in Mandarin that "成本与定价阶段性错位，造成毛利率短期小幅下滑," meaning a temporary mismatch between costs and pricing has driven a slight short-term drop in gross margin [2].
Qualcomm’s price increases will take effect September 1, following previous price notices by MediaTek in June [1, 2, 3]. The company’s next earnings update is due in the coming quarter.
