Bad news for those planning to buy a mobile phone: A price hike that will affect millions is on the horizon

A new development has emerged that could increase cost pressures in the smartphone market. Qualcomm, one of the leading manufacturers of processors widely used in Android phones, has announced that it will increase prices across its processor product lines starting September 1.

The company's decision to raise prices is reportedly linked to a weakening in its mobile device business segment. It was reported that Qualcomm's mobile revenues saw a 20 percent year-on-year decline, marking the lowest mobile revenue level the company has reported since 2021.

Recently, sharp increases in memory prices and supply chain constraints have been cited as primary factors driving up costs for smartphone manufacturers. The price hike Qualcomm will implement on its processors is expected to be reflected in the prices of new phones through production costs.

This development strengthens the possibility of new price increases in consumer electronics while the effects of the global RAM crisis persist. Given the widespread use of models with Qualcomm processors, particularly in the Android ecosystem, the decision is expected to have a broad impact on the market.

It is also noted that Qualcomm is attempting to diversify its strategic focus to reduce its dependence on the mobile market. The company aims to place greater emphasis on data centers and the automotive sector in addition to mobile devices.

In this context, it was announced that Qualcomm has signed a 10-year agreement with BMW to provide chips for future vehicle platforms. The company projects that by 2029, with the growth of automotive and data center revenues, the share of the mobile market in its total revenue could decline to as low as one-third.

News Source: 12punto