Qualcomm to Raise Smartphone Chip Prices After Earnings Miss, Weak Outlook

Qualcomm Inc. will raise chip prices from Sept. 1 as rising memory prices add to its costs. Pressure on profitability in its core smartphone business persisted, sending the stock down about 4% in after-hours trading.

Adjusted EPS came in at $2.21 in the prior quarter

Surging semiconductor manufacturing costs drove the hit

Smartphone chip prices to rise from September

Qualcomm said July 29 that adjusted earnings per share for its fiscal third quarter ended June 2026 was $2.21, missing the market estimate of $2.23. Revenue was $9.95 billion, above the consensus forecast of $9.67 billion.

The company also issued fourth-quarter guidance below market expectations. Qualcomm forecast adjusted EPS of $2.05 to $2.25 for the July-to-September quarter, well under the consensus estimate of $2.36. It projected revenue of $9.7 billion to $10.5 billion.

The weaker outlook reflects rising costs across the semiconductor supply chain. Qualcomm said expenses are climbing in wafer manufacturing, assembly, testing and advanced packaging. As a result, the company will raise chip prices across the board for smartphone makers starting Sept. 1.

Demand in the smartphone market has also remained soft. Chief Executive Officer Cristiano Amon said rising prices for low-end smartphones have hurt competitiveness, and even premium buyers are increasingly choosing cheaper models or last year's devices.

Qualcomm expects Android smartphone revenue to drop about 20% in the current fiscal year, cutting earnings per share by $1.50. Revenue tied to Apple is also falling faster than expected as the iPhone maker speeds its shift away from Qualcomm chips to in-house designs. Chief Financial Officer Akash Palkhiwala said Qualcomm's share of components supplied for the iPhone 18 lineup will be lower than its previous estimate of 20%. The stock fell 4.6% after the close on July 29. Qualcomm shares have dropped about 38% over the past two months and were trading at $155.6.

Qualcomm plans to reduce its reliance on smartphones and focus on diversifying into cars, smart glasses and robots. It aims to increase the share of revenue from products outside smartphones to 60% next year from 24% this year. The company recently said it would also enter the AI data-center infrastructure market.

Han Myung-hyun, Hankyung reporter, wise@hankyung.com