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 producers, which is reportedly set to raise the prices of chips supplied to several partner electronics manufacturers. Reports suggest Qualcomm’s price increases could reach double digits.

Bloomberg reported that Qualcomm has informed its customers of the planned price hike. The company is expected to apply the new prices to chip shipments made after 1 September.

The policy is expected to have a wide impact on the prices of various devices, ranging from flagship Android phones and AI-based PCs to wearables.

A number of devices using Qualcomm processors include the Samsung Galaxy series, such as the Galaxy Z Fold 8 Ultra, Galaxy Z Fold 8 and Galaxy Z Flip 8. In addition, Qualcomm chips are also used in Microsoft Copilot+ PCs as well as wearables such as Ray-Ban Meta smart glasses.

This means the Qualcomm chip price increase could trigger higher prices for a wide range of products from many brands and device categories.

Qualcomm reportedly told its customers that the company can no longer absorb rising component costs from its suppliers. It also said it had tried to source alternative components from new suppliers.

For context, 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 shortages of memory and components due to surging demand for the construction of artificial intelligence (AI) data centres.

Beyond 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 Qualcomm’s customers have been unable to produce as many devices as usual due to limited component supplies.

Nevertheless, Qualcomm still posted second-quarter 2026 revenue that exceeded analyst estimates. This indicates that demand for the company’s products remains fairly strong, despite mounting pressure on the supply side and production costs.