Snapdragon chip prices will rise, Android devices will follow

Qualcomm is raising the prices of its already expensive Snapdragon chipsets, which could make price hikes even more common in Android devices.

Bloomberg reports Qualcomm has said it plans to implement price increases on its Snapdragon chips to its customers, many of whom are Android phone makers, starting with any chips shipped after September 1. This is because Qualcomm has “run out of ability to absorb higher costs from suppliers”.

The exact details are still unclear, but prices could increase by “double-digit” percentages. Even if it’s only 10%, it’s a huge blow to the already tight budgets for building Android devices.

While memory costs are the main way electronics are suffering from supply shortages, semiconductors are also being hit. It’s all about the AI industry building data centers and other infrastructure at breakneck speed, pushing all parts of component construction to their limits.

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Qualcomm did not detail the exact reason for the price increase, but the company detailed that it is “making efforts to secure alternative components from new sources.”

It should be noted that Qualcomm’s prices have been rising for several years now, and then the Snapdragon 8 Elite became an unforgettable price increase. It is reported to have increased by 30% over the previous generation. There is a rumor Qualcomm is working on a more affordable version of its current flagship Snapdragon 8 Elite Gen 5, considering the price hikes.