Qualcomm could raise smartphone processor prices from 1 September

As the smartphone market is already suffering from the memory chip shortage, the cost of another vital component could also rise. According to Bloomberg, Qualcomm, the leading supplier of smartphone processors, has reportedly told its customers that it plans to increase prices from 1 September.

Qualcomm reportedly plans a price increase for smartphone processors

Smartphone sales are declining as memory chip prices, covering RAM and internal storage, climb. Unfortunately, the shortage behind those increases is far from over. The situation could worsen over the coming months because of another crucial component: the processor. Bloomberg reports that Qualcomm, the leading provider of SoCs for Android smartphones and tablets, has already informed customers of a forthcoming price rise.

The increase would take effect on 1 September and would, unfortunately, exceed 10%. In its message to customers, including smartphone manufacturers, Qualcomm reportedly said it could no longer absorb higher chip production costs by reducing its margins. The company also appears to have sought alternative sources of supply in an effort to avoid raising its prices.

If this information proves accurate, Qualcomm’s higher prices could affect other product categories as well. The company also supplies chips for smartwatches, smart glasses and other accessories.

Smartphone sales are already falling sharply

In any case, the rumour comes as smartphone sales are already being severely hit by the memory chip shortage. According to Counterpoint Research, shipments fell by 11% year on year in the second quarter of 2026. Shipment volumes also dropped to a level not seen since 2013. Counterpoint is already forecasting a steep decline in the smartphone market in 2026, followed by another in 2027.

The AI race is driving demand for memory chips

As a reminder, rising prices for memory chips, as well as other components, are linked to the race for AI. New data centres being built to meet worldwide demand for computing require an astronomical number of memory chips, creating an imbalance between supply and demand.

For now, it is not known when the issue will be resolved. However, some forecasts suggest that the shortage could continue for several more years.