Qualcomm is raising its chip prices by double digits starting tomorrow. Qualcomm announced the impending price hike in July, informing customers that prices would increase for chips shipped after September 1.
Qualcomm said it could not continue to absorb rising supplier costs. “We’re just experiencing big cost increases,” Qualcomm CEO Cristiano Amon said in an interview with Reuters.
Apple is transitioning to its own modem chips, but it is still sourcing modem chips from Qualcomm for the iPhone 17 models. Apple will discontinue the iPhone 17 Pro models when the iPhone 18 Pro releases in September, but it is likely to keep the iPhone 17 in the lineup.
Apple’s iPhone 17e and iPhone Air use its C1X modem, and rumors suggest that some iPhone 18 Pro models and the foldable iPhone could use a new Apple-designed C2 chip with faster 5G speeds. Apple may still rely on Qualcomm for modem chips in the United States, according to leaked iPhone 18 Pro documents from Tata Electronics.
DRAM and storage prices have increased due to supply issues, which have affected most device manufacturers. Apple raised prices for Macs and iPads in June, and the iPhone 18 Pro models are expected to be more expensive than their predecessors.
Amon also said in July that Qualcomm expects Apple’s revenue to decline faster than expected, falling about 50% from the September quarter to the December quarter. He blamed supply constraints, which will reduce the share of Qualcomm components used in the iPhone 18 lineup.
In addition to supplying modem chips to Apple, Qualcomm makes mobile chips for Samsung and other smartphone makers. Qualcomm is increasing prices across its lineup and increases will be negotiated individually with customers.
