The chip powering your next smartphone just got even more expensive

Technology is under the hammer right now thanks to the rising demands for components being funnelled into booming AI data centres. That's already seen price increases from brands like Samsung and Apple, but those increases are about to be compounded by another factor.

Qualcomm has announced that it will be increasing prices from 1 September, according to CNBC, meaning that the chip that powers your next phone is likely to be more expensive.

The price increase will hit in advance of the announcement of Qualcomm's next-gen Snapdragon hardware, which is expected to deliver big performance gains through move from a 3nm to 2nm process in the Snapdragon 8 Elite Gen 6.

The cause of the pressures is acknowledged in Qualcomm's quarterly statement, reflecting on a "challenging memory and supply environment", something that smartphone makers themselves are struggling with.

That has seen the component costs for manufacturers increasing, which in turn sees higher prices for customers.

The report goes on to outline that chip sales for smartphones are a huge part of Qualcomm's business, although the company has actively been looking at other segments for growth, with announcements such as the partnership with BMW giving another avenue for development.

While that's good for Qualcomm - who says that revenue remains strong - it reflects on the continued pressures that AI has put on consumer electronics.

The Snapdragon 8 Elite Gen 6 is expected to be announced at Snapdragon Summit in late September 2026, while MediaTek is expected to announce the Dimensity 9600 around the same time, also moving to a 2nm process.

MediaTek's hardware has traditionally been cheaper than Qualcomm's and smartphone brands might look to alternative suppliers to keep costs down. That could be a boon for MediaTek as well as Samsung's Exynos brand.

One established leaker on X has shared prices for Qualcomm's flagship hardware over the past generations, reflecting the price changes. It's thought that MediaTek could be 25% cheaper, which could see it appearing in many more devices in 2027.

Unfortunately, most consumers look for Snapdragon in their devices, with Qualcomm's chips aligned with the best flagship phones.