// THE VERGE — MOBILE & WEB
Qualcomm is raising phone chip prices starting September 1st
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Qualcomm reported its lowest quarterly handset revenue since 2021.
Qualcomm reported its lowest quarterly handset revenue since 2021.
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RAMageddon won’t be the only reason your next phone costs more — Qualcomm is about to raise prices on all its processors, as well. Qualcomm CEO Cristiano Amon said on Wednesday that “prices are going to go up” on the company’s products starting on September 1st, CNBC reports. The price hikes were rumored last week to be “a percentage in the double digits.”
Qualcomm announced the planned price increases while reporting a 20 percent year-over-year drop in revenue from its handset business, the lowest it’s reported since 2021. In its quarterly earnings presentation, Qualcomm said this drop is due to “unprecedented increases in memory pricing and supply constraints,” which have been driving up prices on everything from game consoles to laptops and even Raspberry Pi boards, with no sign of stopping any time soon. But instead of profiting less as a result, the company says it’ll raise its own prices to compensate.
Qualcomm is also expecting an “acceleration” in the dip in revenue from Apple products, noting that its “modem share for the upcoming iPhone launch is expected to be materially lower.” It suggested twice on the earnings call that its other businesses would make up the difference.