Qualcomm announced plans to increase prices across its processor lineup effective September 1st, according to CEO Cristiano Amon during an earnings call. The price hikes are rumored to be in the double-digit percentage range.
The company disclosed the increases while reporting a 20 percent year-over-year decline in revenue from its handset business, marking the lowest figure since 2021. Qualcomm attributed the revenue drop to unprecedented memory pricing increases and supply constraints affecting the broader electronics industry. Rather than accept lower margins amid these cost pressures, the company opted to pass increased expenses to customers through higher chip prices.
Qualcomm also flagged an anticipated acceleration in revenue declines related to Apple products, stating that its modem share for the upcoming iPhone launch is expected to be materially lower than previous generations. The company expressed confidence that other business segments would offset this loss.
As smartphone revenue faces headwinds, Qualcomm is pursuing a diversified revenue model. The company projects that within several years, handset revenue will represent only one-third of its total business by 2029, with data center and automotive segments expanding significantly. The company secured a decade-long chip supply agreement with BMW, underscoring its push into automotive markets.
Meanwhile, some original equipment manufacturers have begun adopting earlier-generation Qualcomm chips in response to elevated component costs, according to CFO Akash Palkhiwala.
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