Qualcomm has declared its intention to implement a price increase for its processor products, effective from September 1, with the hike potentially reaching double digits. This strategic move was unveiled during the release of its financial results for the third quarter of the 2026 fiscal year. Notably, the company's mobile phone business revenue witnessed a 20% year-on-year decline, hitting the lowest quarterly level since 2021. Qualcomm attributed the pressure on its mobile phone business mainly to escalating memory prices and a constrained supply, factors that have collectively driven up costs throughout the industry chain. Rather than shouldering these costs internally, Qualcomm has opted to pass them on, a decision that may result in the transfer of cost pressures to end-users of related smartphones. Meanwhile, Qualcomm anticipates a significant decrease in its baseband share for the new generation of iPhones, a consequence of Apple's progress in developing its own basebands. Nevertheless, the company expects growth in its data center and automotive sectors to counterbalance the impact of the mobile phone business downturn. Qualcomm is actively pursuing business diversification, with expectations that the revenue contribution from its mobile phone business will soon reduce to approximately half, and further decline to about one-third by 2029. Additionally, Qualcomm has secured a 10-year chip supply agreement with BMW. Amid rising component prices, some mobile phone manufacturers are resorting to using previous-generation Qualcomm chips in their new products as a cost-control measure.