New Development Set to Drive Smartphone Prices Even Higher

Smartphone prices could rise again in the near future. The trigger comes from Qualcomm, one of the world’s largest chipset manufacturers, which has reportedly informed its customers of plans to increase the price of chips supplied to device manufacturers, with the hike said to reach double digits. Bloomberg reported that Qualcomm has notified its customers about the planned price increase, with the company expected to apply the new pricing for chip shipments made after 1 September. This policy is expected to have a broad impact on the prices of various devices, from flagship Android phones and AI-based PCs to wearable devices. A number of devices using Qualcomm processors include Samsung Galaxy series models, such as the Galaxy Z Fold 8 Ultra, Galaxy Z Fold 8, and Galaxy Z Flip 8. Qualcomm chips are also used in Microsoft Copilot+ PCs and wearable devices like the Ray-Ban Meta smart glasses. This means the increase in Qualcomm chip prices has the potential to trigger price hikes for various products across multiple brands and device categories. Qualcomm reportedly told its customers that the company can no longer absorb the rising component costs from its suppliers. The company also admitted it has tried to find alternative components from new sources. Most Qualcomm chips are manufactured by TSMC, which is currently facing supply chain constraints. Like many other technology companies, Qualcomm has also been affected by memory and component shortages due to surging demand for artificial intelligence data centre construction. In addition to bearing increasingly expensive component costs, Qualcomm’s sales are also said to have been under pressure throughout the year. Bloomberg explained that the company’s sales have declined because its customers have been unable to produce as many devices as usual due to limited component supplies. Despite this, Qualcomm still posted second-quarter 2026 revenue that exceeded analyst estimates, indicating that demand for its products remains strong, even as supply-side and production cost pressures continue to mount.