Qualcomm, the San Diego, California-based maker of smartphone chips, has informed its customers that it will be raising prices by a double-digit percentage, Bloomberg News reported Friday, citing a letter the company sent to clients.
Qualcomm did not respond to a request for comment from Reuters. The company’s stock was down more than 1% following the report.
According to Bloomberg, the letter was sent to customers on Friday, with the price increases set to take effect for any products shipped after September 1.
The company told customers it is no longer able to absorb the rising costs from its suppliers and has been working to find alternative components through new suppliers, the report said.
The news comes as Qualcomm faces growing pressure in the smartphone market, where a shortage of memory chips and a shift in investment toward artificial intelligence infrastructure have created additional challenges for the company.
Qualcomm is scheduled to release its third-quarter financial results on July 29. Reuters noted it was unable to independently confirm the details of the Bloomberg report.
