Qualcomm has notified clients of a major price increase on all chip shipments starting next month. The silicon designer plans to raise costs by double digit percentages, potentially exceeding 10%, due to rising supplier expenses. Electronics are about to get expensive. As a result, the retail price of upcoming smartphones, laptops, and smart glasses will likely spike.
According to report from Bloomberg, the company has exhausted its ability to absorb rising production costs. Qualcomm previously attempted to secure alternative suppliers to ease the financial pressure, but those efforts fell short. The price adjustments will take effect on shipments departing at the start of next month. This leaves hardware brands with very few options.
The decision will hit hardware manufacturers directly. Qualcomm processors power premium devices globally, including Samsung folding phones and the latest Windows computers. If device manufacturers choose to pass these expenses down, retail pricing for consumer electronics will climb even higher. Already, supply chain pressures have forced some brands to trim hardware specifications or delay product launches.
