Updated

Updated · 9to5Google · Jul 25

Qualcomm Raises Snapdragon Chip Prices by Double Digits After Sept. 1 as Supplier Costs Climb

Updated

Updated · 9to5Google · Jul 25

Qualcomm Raises Snapdragon Chip Prices by Double Digits After Sept. 1 as Supplier Costs Climb

Q: With Qualcomm's massive chip price hike looming next month, will the upcoming Galaxy S27 Ultra become unaffordable for average consumers?

Probably not unaffordable for the average flagship buyer, but it is very likely to get even more expensive and further out of reach for mainstream consumers. The main reason is scale. Qualcomm’s reported double-digit chip price hike hits after September 1, 2026, and Samsung’s next Galaxy S27 Ultra is expected in early 2027, making it a likely target. The increase would land on top of already rising memory and storage costs, which Samsung itself has warned could stay tight through 2027. Reports also point to very high 2nm manufacturing costs at TSMC, with premium Snapdragon variants potentially topping $300 per chip. That does not mean the full phone price rises by the same percentage. The processor is only one part of the bill of materials, and Samsung can soften the blow through supply deals, product mix, carrier subsidies, trade-in offers, and by trimming promotions such as free storage upgrades. But for an Ultra phone that already sits around the $1,300 tier in some markets, even a modest retail increase could push it meaningfully higher. So the bigger risk is not that the S27 Ultra becomes impossible to buy, but that it becomes harder to justify. For many average consumers, Samsung’s base Galaxy S27, FE model, older Ultras, or aggressive preorder and trade-in deals may become the more realistic options. If current cost pressures persist, the S27 Ultra will likely remain a premium niche product rather than a mass-market flagship.

3 articles · Updated · 9to5Google · Jul 25

Qualcomm told customers it will charge double-digit percentage increases on Snapdragon chips shipped after Sept. 1, a move likely to push up Android device prices.
Supplier costs drove the increase after Qualcomm said it had exhausted its ability to absorb them and had already tried sourcing alternative components.
AI data-center buildouts are straining component supply chains beyond memory into semiconductors, tightening budgets for phone makers already facing higher parts costs.
Snapdragon pricing had already been rising for years, including a reported 30% jump for what became the Snapdragon 8 Elite, and Qualcomm is rumored to be developing a cheaper flagship variant.