Qualcomm chip price hike drives Samsung mobile division loss

Qualcomm announced that, starting 1 September, it will raise the prices of its semiconductor components. The increase is attributed to higher manufacturing costs and a shortage of memory caused by growing demand for artificial‑intelligence infrastructure. The higher chip prices are expected to raise production costs for smartphones and laptops and could push low‑end phone models out of the market.

Samsung Electronics reported its first operating loss in its mobile division, a $544 million shortfall in the second fiscal quarter. Although overall smartphone sales remained strong, the surge in component costs eroded margins, especially for entry‑ and mid‑range devices. Premium models such as the Galaxy S26 series and the Galaxy Z Fold line helped offset some of the impact, but the company said it will increasingly focus on high‑value products to sustain profitability.