Qualcomm hikes chip prices September 1st

Starting September 1st, Qualcomm will implement price increases across all its processors, according to CEO Cristiano Amon. This decision follows a substantial 20 percent year-over-year drop in revenue from Qualcomm's handset division, marking its lowest point since 2021. The company cited unprecedented increases in memory pricing and ongoing supply chain challenges as the primary drivers for its financial downturn.

Despite the challenges in the smartphone market, Qualcomm anticipates growth in its data center and automotive businesses. The company projects that by 2029, phone sales will constitute only one-third of its total revenue, with other sectors contributing more significantly. This strategic shift is further supported by a new decade-long deal to supply chips for BMW, signaling a move towards broader market penetration.

Qualcomm also noted an expected acceleration in declining revenue from Apple products, as its modem share for upcoming iPhone models is projected to be considerably lower. To counteract these trends, the company is leveraging its other business segments and observing OEMs beginning to utilize older Qualcomm chip generations due to escalating component costs.