Qualcomm reported mixed fiscal Q2 results, beating revenue expectations but issuing a weaker-than-expected outlook, sending its shares lower in after-hours trading.
The company also announced that it will raise chip prices starting September 1 as costs across the semiconductor supply chain continue to climb.
Many people assume Qualcomm manufactures its own chips, but that’s not the case. Qualcomm designs Snapdragon processors and outsources production to foundries such as TSMC. As AI demand continues to surge, manufacturing costs—including wafer fabrication, advanced packaging, memory, and other key inputs—have risen significantly, driving up Qualcomm’s overall production costs.
At the same time, smartphone manufacturers are paying more for DRAM and other components, while demand for premium smartphones remains relatively weak.
As a result, Qualcomm is caught in the middle: its production costs are rising, but its customers are becoming increasingly price-sensitive.#ShareMyTradFi $QCOM
The company also announced that it will raise chip prices starting September 1 as costs across the semiconductor supply chain continue to climb.
Many people assume Qualcomm manufactures its own chips, but that’s not the case. Qualcomm designs Snapdragon processors and outsources production to foundries such as TSMC. As AI demand continues to surge, manufacturing costs—including wafer fabrication, advanced packaging, memory, and other key inputs—have risen significantly, driving up Qualcomm’s overall production costs.
At the same time, smartphone manufacturers are paying more for DRAM and other components, while demand for premium smartphones remains relatively weak.
As a result, Qualcomm is caught in the middle: its production costs are rising, but its customers are becoming increasingly price-sensitive.#ShareMyTradFi $QCOM