Qualcomm tells customers of double-digit price increases, Bloomberg News reports
Qualcomm Announces Price Hike Amid Rising Costs
July 24 (Reuters) - Smartphone chipmaker Qualcomm told customers it would raise prices by a percentage in the double digits due to rising costs, Bloomberg News reported on Friday, citing a letter sent to clients.
Details of the Price Increase
Here are some details:
Implementation Timeline
• Qualcomm sent the letter to customers on Friday, informing them that the price hike will go into effect for products shipped after September 1, the report said.
Reasons Behind the Price Hike
• The company told customers it could no longer absorb rising supplier costs and had sought alternative components from new suppliers, Bloomberg reported.
Company Response
• Qualcomm declined to comment. Reuters could not independently verify the report.
Market Context and Outlook
Industry Challenges
• The chipmaker has been grappling with mounting pressure in the smartphone market, which has been squeezed by a memory chip shortage as investment is redirected toward AI infrastructure.
Upcoming Financial Results
• Qualcomm is set to report its third-quarter results on July 29.
Reporting Credits
(Reporting by Anhata Rooprai in Bengaluru; Editing by Shilpi Majumdar)
