Qualcomm Announces Price Increases Amid Supply Chain Challenges
Qualcomm reported fiscal third-quarter earnings that met analyst expectations, but issued lighter-than-expected guidance for the current quarter due to ongoing supply chain issues. The chipmaker cited rising input costs across wafer fabrication and memory as key challenges affecting its operations. In response, Qualcomm plans to raise prices on its chips starting September 1 in an effort to maintain margins amid higher production costs. CEO Cristiano Amon emphasized that these price increases are necessary due to the broader semiconductor industry's cost pressures. The company is also focusing on diversifying beyond smartphones into markets like automotive and AI data centers. Qualcomm’s handset chip sales declined year-over-year, reflecting a slowdown in China. However, its automotive segment showed strong growth with $1.59 billion in revenue.
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