Qualcomm's recent announcement regarding an impending price hike for its entire range of system on a chip (SoC) products has raised concerns about the future cost of smartphones. This increase, confirmed by CEO Cristiano Amon, is set to take effect on September 1.
Reasons Behind the Price Increase
The decision to raise prices is not made lightly. Qualcomm is facing a significant drop in revenue from its mobile business, which fell by 20% year-over-year, marking the company's lowest performance since 2021. The decline is attributed to supply chain challenges and an unprecedented surge in global memory prices.
Impact on the Electronics Market
This crisis has led to an uptick in prices across various electronic devices, including game consoles, laptops, and small computer components, with no signs of relief on the horizon. To counteract these rising production costs, some device manufacturers are reportedly opting for older Qualcomm chip series to manage expenses.
Future Revenue Projections
Qualcomm anticipates further revenue declines, particularly from its partnership with Apple. The supply of Qualcomm modems for the next generation of iPhones is expected to decrease significantly. However, company executives remain optimistic that growth in other business areas will compensate for this loss.
Diversifying Business Focus
In response to the declining smartphone sector, Qualcomm is shifting its business strategy to balance its focus across three main pillars: mobile, automotive, and data centers. The company predicts that within a short period, mobile will contribute only half of its total revenue, potentially shrinking to a third by 2029 as the data center and automotive divisions expand.
As part of this new strategy, Qualcomm has recently entered into a long-term, ten-year partnership to become the primary chip supplier for automotive giant BMW. This move underscores Qualcomm's efforts to diversify and adapt in an ever-evolving technology landscape.
Source: https://inet.detik.com/consumer/d-8596383/harga-hp-bakal-makin-mahal-qualcomm-segera-naikkan-harga-chip
