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Tech

Qualcomm Warns of Price Hikes as Earnings Miss Expectations, Stock Falls

Qualcomm announced it will raise prices due to rising memory costs, while its quarterly earnings fell short of Wall Street estimates, sending shares lower. CEO Cristiano Amon said the company must pass on higher costs to customers, citing a memory crunch that has squeezed margins. The chipmaker issued light earnings guidance for the current quarter, reflecting ongoing supply chain pressures and weaker demand in certain end markets. Qualcomm's bottom line missed analysts' expectations, contributing to a decline in its stock price after the report. The price increases are expected to affect a range of products, including chips used in smartphones and automotive applications. The company did not specify the magnitude of the hikes but noted they are necessary to maintain profitability. The memory crunch, resulting from tight supply of DRAM and NAND chips, has impacted multiple semiconductor firms. Qualcomm's cautious outlook underscores broader challenges in the industry, including inventory adjustments and macroeconomic uncertainty. Investors reacted negatively, with shares falling in after-hours trading. The company faces headwinds from a weakening consumer electronics market, though it continues to invest in new technologies like artificial intelligence and 5G. Analysts will watch for further details on the price strategy and demand trends in upcoming quarters.

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