Another company that has thrown in the towel during the DRAM shortage is Qualcomm, with the latest report stating that the chipset manufacturer tried to hold off for as long as it could, but the company eventually caved in. Various unnamed products are expected to become pricier, with those likely being the Snapdragon 8 Elite Gen 6 and Snapdragon 8 Elite Gen 6 Pro.
Increased 2nm wafer costs, low smartphone demand, causing Qualcomm to bring a price hike
An update from Bloomberg mentions that Qualcomm sent a letter to customers on Friday, informing them that the double-digit price hike would go into effect for products shipped after September 1. With the Snapdragon Summit scheduled to be held from September 22, it’s almost guaranteed that the Snapdragon 8 Elite Gen 6 and Snapdragon 8 Elite Gen 6 Pro will become pricier.
Apparently, Qualcomm informed customers that it tried to absorb rising supplier costs for as long as possible, but its long struggle has finally ended. The report also says that the San Diego firm tried searching for alternatives, such as seeking components from other suppliers, but its efforts were in vain. As the memory crisis continues to get worse, Qualcomm continues to wrestle with lower smartphone demand that has put a dent in its chipset business.
Due to this slump, Qualcomm has been forced to make investments towards AI infrastructure while also aggressively expanding its presence in the automotive sector. It was rumored that TSMC’s 2nm wafers, which cost an estimated $30,000, would force the company to introduce price hikes on the Snapdragon 8 Elite Gen 6 Pro, with the latter said to cost upwards of $300.
Smartphone companies that plan to pair the Snapdragon 8 Elite Gen 6 Pro with LPDDR6 RAM and UFS 5.0 storage could be looking at $600 in component costs alone. Fortunately, there’s some relief for Qualcomm’s customers as the standard Snapdragon 8 Elite Gen 6 isn’t expected to witness a massive price jump and will likely be adopted in higher volume while offering fewer compromises.
Aside from the Snapdragon 8 Elite Gen 6 and Snapdragon 8 Elite Gen 6 Pro, Qualcomm plans to offer a variety of 2nm and 3nm SoC options to its clients, with four new chipsets arriving to provide better flexibility and pricing. With the DRAM crisis likely to persist for the next couple of years, Qualcomm will probably focus less on its handset business and more on money-making sectors, such as AI data centers.
About the author: Omar Sohail is a reporter and analyst for Wccftech's mobile section, specializing in the technology and business of the mobile industry. His expertise lies in the intricate hardware supply chain, covering developments in semiconductor manufacturing, chip lithography, and camera sensor technology.
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