Retailers Warn August Smartphone Price Hikes as Qualcomm Lifts Chip Prices by Double Digits
Updated
Updated · Gulf News · Jul 28
Retailers Warn August Smartphone Price Hikes as Qualcomm Lifts Chip Prices by Double Digits
3 articles · Updated · Gulf News · Jul 28
Summary
August smartphone prices are set to rise as retailers say inventories are thinning and replacement shipments are arriving at higher wholesale costs, with budget and mid-range models facing the sharpest pressure.
A $20-$30 per-unit cost jump has already hit lower-end phones with 4GB RAM and 64-128GB storage, as AI data centers absorb DRAM and NAND supply and leave fewer standard memory chips for handset makers.
September 1 will bring another squeeze after Qualcomm told customers it will raise prices by double digits on many chips, prompting phone makers and distributors to adjust procurement and pricing in advance.
Middle East tensions are also lifting freight, insurance and transport costs, while retailers report irregular deliveries and dwindling discounts as older, cheaper inventory runs out.
Counterpoint and IDC say thin margins leave budget brands least able to absorb the shock, increasing the odds of fewer low-cost models, weaker specifications at the same price, or outright retail hikes.