Qualcomm is raising chip prices and says it can no longer absorb rising supplier costs

The wave of rising device prices may not slow down anytime soon. After Apple, Samsung, Google and Microsoft raised prices or hinted at increases due to rising component costs, Qualcomm has now joined the list. The chipmaker has reportedly informed customers that it plans to raise prices on its products starting September 1, a move that could eventually make smartphones, laptops and other devices more expensive.

According to a famous publication report, Qualcomm sent a letter to customers warning that prices will increase by a "double-digit percentage" for products shipped after September 1. The company said it has "exhausted its ability to absorb higher costs from suppliers" as global shortages of key components continue to drive up manufacturing costs. Qualcomm also noted that it had tried to source parts from alternative suppliers before settling on the price increase.

A famous publication contacted Qualcomm for a comment.

Qualcomm says supplier costs leave it no choice

Qualcomm is a player in the smartphone industry providing processors for top Android phones from companies like Samsung, Xiaomi, OnePlus and more. In addition to smartphones its chips are also found in Windows computers, smart glasses, car systems and internet of things devices.

Even though Qualcomm has not said how much more each chip will cost the company said the price hikes will start with products shipped in September. Companies that use Qualcomm chips can handle the expense or they can increase the prices, for customers.

More expensive phones may be on the way

The announcement adds to a broader trend in the consumer electronics industry. Rising prices for memory chips and other key components have already forced several companies to review prices or rethink product strategies.

Recently, Google Vice President of Devices and Services Shakil Barkat confirmed that the next Pixel 11 price series will cost more than its predecessor. In other big names, Apple, Samsung, Microsoft, Nintendo and even Raspberry Pi products are expected to see higher prices due to ongoing component shortages.

In some cases, companies have also reduced hardware specifications while raising prices to offset rising production costs. Take an example, the upcoming Pixel 11 Pro, which according to leaks could cost $100 more than its predecessor, but is said to come with 12GB of RAM, instead of 16GB.

Now that Qualcomm is also raising chip prices, consumers could see the impact on a wider range of smartphones and other electronic devices launching later this year and in the future.