Qualcomm is about to raise prices and that’s bad news for everyone

Qualcomm sent a letter to customers on Friday warning of plans to raise its prices by “two percent,” Bloomberg reports. The price increase will take effect starting with products shipped after September 1st.

Qualcomm says it has “exhausted its ability to take more money from suppliers,” as the lack of ongoing episodes keep raising prices. The company also said it tried to source products from other suppliers before announcing the price hike.

Like Bloomberg Note, Qualcomm’s price hikes could be problematic, especially for smartphones. Qualcomm chips run everything from Samsung’s new foldables to upcoming smart glasses. Earlier this year, Qualcomm also promised one of its new platforms offer $300 Windows PC. These devices could become more expensive if device manufacturers pass on Qualcomm’s price increases to their customers.

Qualcomm did not immediately respond to a request for comment.