Qualcomm (QCOM) Stock Falls as Company Warns of Double-Digit Price Hikes
TLDR
- Qualcomm sent a letter to customers Friday announcing double-digit percentage price increases
- Price hikes take effect for products shipped after September 1
- The company says it can no longer absorb rising supplier costs
- Qualcomm has also sought alternative components from new suppliers
- QCOM stock fell 2.42% on the news; Q3 earnings are due July 29
Qualcomm told customers Friday it is raising prices by a double-digit percentage, citing costs it can no longer absorb. The San Diego-based chipmaker sent a letter to clients informing them the increases will apply to products shipped after September 1.
QCOM stock dropped 2.42% following the Bloomberg report. Taiwan Semiconductor Manufacturing Co (TSM) also slid 2.93% on the day.
Qualcomm said it had exhausted its ability to offset rising supplier costs and had already tried to source alternative components from new suppliers. Neither effort was enough to avoid passing costs on to customers.
The chipmaker is one of TSMCโs biggest customers. TSMC is the worldโs top provider of outsourced chipmaking.
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