Qualcomm is raising chip prices from September 1, and Android phones could get more expensive

Q: Which Android OEMs does the article name as likely affected by Qualcomm’s price increase?

The article names Samsung, Xiaomi, OnePlus, and Oppo as likely affected by Qualcomm’s price increase. It also says Qualcomm supplies chips to virtually every major Android OEM building premium and midrange devices, implying broader impact beyond those named companies.

Q: What longer-term business shift did Qualcomm’s CEO mention as a response to supply cost pressure?

Qualcomm’s CEO Cristiano Amon said the company’s longer-term strategy is to reduce its dependence on smartphones, shifting growth toward non-smartphone businesses. Qualcomm expects data center, automotive, and IoT segments to grow so that non-smartphone businesses account for about 60 percent of total revenue by next year.

Q: How might Qualcomm’s price increase affect Android phone prices or OEM margins in late 2026 and 2027 according to the article?

The article says Qualcomm’s price hike will force smartphone makers to either absorb higher chip costs or pass them to consumers, meaning Android phones could become more expensive or OEMs could accept slimmer margins. Bloomberg expects the hikes to be in the double-digit percentage range, and some manufacturers may instead use older or lower-tier Qualcomm chips to offset the impact.

Q: What other component price trends does the article link to Qualcomm’s decision and broader industry cost pressures?

The article links Qualcomm’s decision to soaring memory costs and AI-driven demand that are pushing component prices higher. It specifically cites rising input costs across wafer fabrication, assembly, test, advanced packaging, memory, and other materials, with memory called out as the primary near-term driver. The piece also notes wider industry impacts such as higher DDR5 memory kit prices and rising GPU prices.

Qualcomm's September 1 price hike could squeeze Samsung, Xiaomi, OnePlus, and OPPO, forcing higher Android phone prices or slimmer margins.

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Hassam Nasir

Tech Reporter

Published Aug 1, 2026 11:50 PM CDT

1 minute & 15 seconds read time

TL;DR: Qualcomm will raise chip prices starting September 1, citing broad input-cost increases-especially memory-which may force Samsung, Xiaomi, OnePlus, and OPPO to raise Android phone prices, slim margins, or use older/cheaper Qualcomm chips; the company plans to shift revenue toward non-smartphone segments.

Voice: Hassam NasirSpeed

0:00 / 3:12

Qualcomm has confirmed it will raise prices across its product lineup starting September 1, CEO Cristiano Amon announced during the company's fiscal Q3 2026 earnings call. The move makes Qualcomm the latest hardware company to raise prices as soaring memory costs and AI-driven demand continue to push component prices higher across the industry.

"Cost went up, prices are going to go up," Amon told CNBC. The exact size of the increase has not been disclosed, although Bloomberg reports that the hikes are expected to be in the double-digit percentage range. Qualcomm framed the decision as a broad-based supply chain response during the earnings call, saying, "The semiconductor industry is experiencing a broad-based increase in input costs, across wafer fabrication, assembly, test, advanced packaging, memory and other materials."

Qualcomm is raising chip prices from September 1, and Android phones could get more expensive 2

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While Qualcomm cited rising costs across the entire manufacturing stack, Amon was more direct about memory being the primary near-term driver. "Consumer preference within the premium category is changing towards a preference to the lower end of the premium, as well as to last year's phone, because of the memory price increases," Amon said. Qualcomm's response is to protect its margins by passing those costs downstream rather than absorbing them.

With Qualcomm supplying chips to Samsung, Xiaomi, OnePlus, Oppo, and virtually every major Android OEM building premium and midrange devices, those higher costs will ultimately land on smartphone makers. They will either have to absorb the increased chip prices themselves or pass them on to consumers.

Some manufacturers may instead turn to older or lower-tier Qualcomm chips to offset the impact. Qualcomm CFO Akash Palkhiwala noted during the earnings call that some OEMs are already doing exactly that, opting for prior-generation Snapdragon chips in response to higher component costs.

Qualcomm is raising chip prices from September 1, and Android phones could get more expensive 3

Amon described the supply cost pressure as temporary, adding that Qualcomm's longer-term strategy is to reduce its dependence on smartphones. The company expects non-smartphone businesses to account for 60% of total revenue by next year, with its data centre, automotive, and IoT segments continuing to grow.

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Question #1

Which Android OEMs does the article name as likely affected by Qualcomm’s price increase?

Question #2

What longer-term business shift did Qualcomm’s CEO mention as a response to supply cost pressure?

Question #3

How might Qualcomm’s price increase affect Android phone prices or OEM margins in late 2026 and 2027 according to the article?

Question #4

What other component price trends does the article link to Qualcomm’s decision and broader industry cost pressures?

Have a question not listed here? Ask below and TweakBot will answer it.

For consumers buying an Android phone in late 2026 or 2027, welcome to the club. Console gamers still reminisce about when a PlayStation launched at $299 with a game in the box, and PS6 rumours now point to a console that could cross the $1,000 mark if the memory crisis does not ease. PC builders are watching 32GB DDR5 kits cost more than entire GPU setups used to, and those GPUs are heading up another 30% themselves.