Qualcomm will raise prices on its smartphone processors by double-digit percentages after September 1. MediaTek, the other major player in mobile chips, is also passing higher supply-chain costs to customers. The moves are expected to send shockwaves beyond the phone market.
Why the price hikes are coming
Both companies have been squeezed by rising costs across the supply chain — from raw materials to manufacturing and logistics. Qualcomm's decision to implement a double-digit increase is a direct response to those pressures. MediaTek, which competes fiercely with Qualcomm in mid-range and budget phones, isn't far behind. The company confirmed it will pass along its own cost increases to customers, though it hasn't specified a timeline or exact percentage.
The timing matters. September 1 is just weeks away, giving phone makers little room to adjust their budgets or product plans before the new prices take effect.
Smartphone brands that rely on Qualcomm and MediaTek chips — essentially every major Android manufacturer — will have to decide whether to absorb the extra cost or push it onto buyers. Given razor-thin margins in the mid-range segment, most analysts expect price increases to flow through to consumers. That could mean higher prices for phones later this year and into 2026.
The impact won't be even. Premium devices often use Qualcomm's Snapdragon 8 series, which already carries a high price tag. A double-digit percentage increase there could add tens of dollars to the bill of materials. Budget phones, which use cheaper MediaTek chips, might see a smaller absolute increase but a larger relative one — potentially squeezing entry-level models that sell on price alone.
Ripple effects beyond smartphones
Qualcomm and MediaTek don't just make phone processors. Their chips power tablets, laptops, routers, automotive infotainment systems, and IoT devices. The price hikes are expected to hit those segments too, though it's unclear whether the increases will be uniform across product lines. Automotive and industrial customers typically sign longer-term contracts, which may delay or soften the blow. But consumer electronics like laptops and tablets could see price adjustments sooner.
The broader semiconductor market has been volatile for years. Pandemic-era shortages gave way to a glut in 2023, but costs never fully retreated. Now, with inflation and geopolitical tensions still squeezing supply chains, chipmakers are passing the pain downstream.
What comes next depends on how phone makers respond. Some may try to shift orders to lower-cost alternatives or negotiate volume discounts. Others may accelerate their own chip development — a path companies like Samsung and Google have already taken. But for most, the options are limited. Qualcomm and MediaTek control the vast majority of the smartphone processor market. There's no easy way around them.
Phone buyers will start seeing the effects later this year, when new models launch with slightly higher price tags. The question isn't whether prices are going up. It's how much.
