Qualcomm has confirmed that several of its products, including the Snapdragon 8 Elite Gen 6 and Snapdragon 8 Elite Gen 6 Pro, will become more expensive due to rising supplier costs, according to a report published on Friday (24/07).

The company said the double-digit price increase will apply to products shipped after September 1.

Qualcomm said it had absorbed higher supplier costs for as long as possible before deciding to increase prices.

Qualcomm Announces Double-Digit Price Increase for Chipsets

According to Bloomberg, Qualcomm informed customers in a letter sent on Friday that the double-digit price increase will take effect for products shipped after September 1.

The report said the Snapdragon Summit is scheduled for September 22, making it highly likely that the Snapdragon 8 Elite Gen 6 and Snapdragon 8 Elite Gen 6 Pro will be among the products affected.

Qualcomm also said it looked for alternative component suppliers but was unable to reduce the increasing costs.

Higher 2nm Wafer Costs and Weak Smartphone Demand Drive the Increase

The report said higher costs for TSMC's 2nm wafers and lower smartphone demand contributed to Qualcomm's decision to raise prices.

It also stated that Qualcomm continues to deal with the ongoing memory crisis while weaker smartphone demand has affected its chipset business.

As a result, the company has been investing in AI infrastructure and expanding its presence in the automotive sector.

Snapdragon 8 Elite Gen 6 Pro Expected to Cost More

The report said TSMC's 2nm wafers are estimated to cost about $30,000, which could lead Qualcomm to increase the price of the Snapdragon 8 Elite Gen 6 Pro to more than $300.

It also said smartphone manufacturers using the Snapdragon 8 Elite Gen 6 Pro together with LPDDR6 RAM and UFS 5.0 storage could face component costs of around $600.

The standard Snapdragon 8 Elite Gen 6 is not expected to see a major price increase and will likely be adopted in higher volumes while offering fewer compromises.

Qualcomm Expands 2nm and 3nm Chip Offerings

The report said Qualcomm plans to offer several 2nm and 3nm system-on-chip options, with four new chipsets designed to provide customers with greater flexibility and different pricing options.

It also said that if the DRAM crisis continues over the next few years, Qualcomm will likely place less focus on its handset business and more attention on sectors such as AI data centers.

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This article was created with AI assistance.

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