Qualcomm is significantly increasing the price of chips starting today. Apple but he has his own solution up his sleeve

Qualcomm is increasing the prices of its chips starting today, September 1st, with some cases expected to be double-digit price increases. The American manufacturer warned its customers about this move back in July, and now the change is actually taking effect. This is not exactly pleasant news for smartphone manufacturers, especially at a time when the prices of memory and other components are also rising. Apple However, it is in a somewhat strange position. While it still needs Qualcomm, it is also rapidly becoming independent of it.

According to Qualcomm CEO Cristian Amon, the reason for the price increase is relatively straightforward. The company is facing rising costs on the supplier side and no longer wants to absorb them from its margin. It will therefore pass the increased costs on to customers, with specific terms and new prices to be negotiated individually.

Pro Apple The whole situation is interesting mainly because of 5G modems. iPhones 17 because they still use modems Qualcomm, so the increase in the price of components may also affect their further production. Standard iPhone 17 moreover, it will probably remain on offer even after the arrival of this year's generation, while the models iPhone 17 Pro Apple traditionally withdrawn from sale.

Apple already has its own modems

Dependence AppHowever, the number of Qualcomm users is significantly smaller than it was a few years ago. iPhone 17and iPhone Air use the C1X modem directly from the workshop Applu and the next generation is to accelerate this strategy even further. According to the information so farmacshould be in some iPhonech 18 Pro and also in the expected folding iPhone to discover the new C2 modem, which is supposed to offer higher 5G speeds, among other things.

However, the complete end of cooperation with Qualcomm is not yet evident. Leaked documents related to the production of the iPhone 18 Pro have indicated that miniAt least models intended for the US market may continue to use a Qualcomm modem. Apple So it is apparently switching to its own solution gradually instead of cutting off its long-standing supplier overnight.

But Qualcomm itself admits that the balance of power is changing very quickly. Amon said in July that the company's revenue from Applu are expected to fall by about half between the September and December quarters. Limited supplies are also expected to play a role in this, which will cause Qualcomm's share of components to fall in the iPhone 18 lower.

Smartphones are generally becoming more expensive

The whole thing comes at a difficult time for virtually the entire technology industry. Supply issues are driving up the prices of DRAM and storage, and higher production costs have already hit many electronics manufacturers. Apple for example, in June it increased the prices of some Macs and iPads, and the upcoming iPhones 18 Pro are also expected to be more expensive than their predecessors.

Therefore, Qualcomm's price increase in itself may not mean that Apple It will immediately rewrite the price tags of iPhones. But it is another piece in the puzzle of rising production costs. In the long run, it shows why Apple He has invested so many years and money in developing his own modems. The more key components he can design himself, the less impact similar supplier decisions will have on his products, margins, and ultimately prices for customers.