Qualcomm to Raise Chip Prices as Memory Shortage Squeezes Margins

The Main Points

• Qualcomm's fiscal third-quarter earnings matched analyst expectations, but current-quarter guidance came in light on an in-line revenue outlook.
• CEO Cristiano Amon said the company will raise prices across its chip lineup starting September 1, citing rising costs tied to an ongoing memory component shortage.
• Handset chip sales fell 20% year-over-year to $5.1 billion, which the company attributed to a bottoming-out in the China smartphone market.
• Amon said even premium Android phone buyers, where Qualcomm has historically been dominant, are increasingly price-sensitive.
• The company expects next-quarter adjusted earnings of $2.05 to $2.25 per share on revenue between $9.7 billion and $10.5 billion.