Qualcomm Confirms September Price Hike as Supply Chain Costs Rise Beyond Memory

Executive Briefing

• Raises chip prices starting September 1, with CEO citing broad cost increases across fabrication, assembly, testing, and packaging
• Reports suggest double-digit percentage increases, with flagship chips potentially costing phone makers over $300 each
• Smartphone chip revenue fell 20% year over year to $5.1 billion, driven largely by weak China sales
• Shifts strategy toward automotive and data center revenue, targeting 60% of total revenue from non-handset sales by next year
• Apple modem business shrinking faster than expected, with iPhone share falling well below the projected 20% estimate