The next wave of smartphones may be getting more expensive before they even reach store shelves. Qualcomm is raising chip prices by double-digit percentages from September 1, putting fresh cost pressure on phone makers already dealing with increasingly expensive memory, storage and semiconductor manufacturing.
Qualcomm warned customers about the increases in July, with the higher pricing applying to chips shipped from September onwards. CEO Cristiano Amon has attributed the move to rising supplier costs that the company says it can no longer absorb. The exact increase won’t necessarily be identical for every manufacturer, with pricing expected to be negotiated individually across Qualcomm’s product portfolio.
That matters well beyond Qualcomm’s balance sheet. Its Snapdragon processors and cellular modems sit inside devices from some of the world’s largest smartphone manufacturers, including Samsung, meaning higher component costs could eventually influence retail pricing, specifications or profit margins across upcoming Android devices.
Apple is in a slightly different position, although it isn’t completely insulated.
The company has been steadily reducing its dependence on Qualcomm by developing its own cellular modems. The iPhone 17e and iPhone Air already use Apple’s C1X modem, while reports suggest Apple could introduce a newer C2 modem in some iPhone 18 Pro models and its anticipated foldable iPhone.
Qualcomm hardware hasn’t disappeared from the iPhone yet, however. Apple still uses Qualcomm modems in the iPhone 17 family, and reports suggest the company could continue using Qualcomm components in some iPhone 18 Pro models, potentially including US variants.
The timing makes the broader component-cost picture particularly important. Memory and storage prices have also risen amid supply constraints, increasing the bill of materials for electronics manufacturers. Apple raised prices on Macs and iPads in June, while the upcoming iPhone 18 Pro generation is expected to cost more than its predecessors.
Qualcomm also has another complication: Apple is becoming a smaller customer. Amon said in July that Qualcomm expects revenue from Apple to decline roughly 50 percent between the September and December quarters, faster than previously anticipated. The company attributed the drop to supply constraints reducing Qualcomm’s share of components in the iPhone 18 lineup.
It would be too simplistic, however, to treat the new price increase purely as a response to Apple moving away. Qualcomm says it is passing through higher supplier costs, and the increases apply across its chip lineup rather than exclusively to components destined for Cupertino.
For consumers, there is no guarantee that a more expensive Qualcomm chip automatically produces a more expensive smartphone. Manufacturers can absorb higher costs, reduce margins, adjust specifications or redistribute costs elsewhere in a device.
But those options become harder when several components are becoming more expensive simultaneously. With Qualcomm increasing prices just as manufacturers prepare their next flagship devices, 2026’s rising hardware costs could become an uncomfortable preview of what smartphone buyers will be paying in 2027.
