Overview
- Qualcomm confirmed on Wednesday that it will raise prices on chips shipped after September 1 to pass through rising supplier costs.
- Industry data show memory (DRAM and NAND) prices jumped roughly 300% year‑over‑year in Q2 2026 and global smartphone SoC shipments fell about 15% in H1 2026, pressuring device makers’ margins.
- Qualcomm warned supply constraints will cut its modem share in the next iPhone to well below its earlier 20% estimate, and it expects Apple‑related modem revenue to decline faster starting in the fourth quarter.
- Phone makers are responding by locking long‑term component contracts, shifting product mixes toward higher‑margin models, and passing costs to consumers, which is already contributing to weaker shipments and higher retail prices.
- Qualcomm is accelerating a strategic pivot to non‑handset businesses with a target of roughly $5 billion in AI data‑center revenue by fiscal 2027 while analysts say near‑term margins will remain under pressure as new contracts and pricing take effect.