Qualcomm to raise chip prices by double digits starting September 1

Qualcomm has informed its customers that it will raise prices on its chips by a double-digit percentage, effective for products shipped after September 1st. The company cited rising costs from component shortages and said it can no longer absorb those expenses.

The price hike will affect a wide range of electronics manufacturers that rely on Qualcomm's processors, particularly smartphone makers. Qualcomm's chips are used in many Android phones and other devices, so the increase is likely to be passed on to consumers.

According to a report from Bloomberg, Qualcomm sent a letter to customers on Friday announcing the planned increase. The company stated that it had exhausted its ability to absorb higher costs from suppliers and had tried to find alternative sources before deciding to raise prices.

This development comes amid a global semiconductor shortage that has driven up costs across the electronics industry. Qualcomm's move is expected to have a ripple effect, potentially making smartphones and other devices more expensive for consumers in the coming months.

Industry analysts anticipate that other chipmakers may follow suit, further impacting device pricing. The full extent of the price increase and its impact on specific products remains to be seen, but the notification signals a significant shift in the supply chain dynamics.