The impact of rising memory chip prices continues to unfold. On March 16, following price adjustments by OPPO and OnePlus, vivo and iQOO announced increases in the suggested retail prices for certain products. Due to persistent significant rises in global semiconductor and memory costs, after careful evaluation, the companies will adjust prices for select models starting at 10:00 on March 18. Specific models and pricing will be displayed on official channel product pages.
Prior to this, major manufacturers including Samsung, Honor, and Xiaomi had already raised prices for their new products across categories such as smartphones, tablets, and laptops. The underlying cause of this round of price increases stems from the comprehensive expansion of the AI industry. Since last year, memory manufacturers like Samsung, SK Hynix, and Micron have shifted production capacity toward enterprise-level products such as high-bandwidth memory (HBM), leading to sustained tight supply of DRAM (with LPDDR being the mobile-specific form) and NAND flash memory required for consumer electronics.
Against this backdrop, manufacturers like vivo announcing price adjustment plans in advance provides a brief decision-making window for the market and consumers, seen as a relatively moderate transition approach. In the longer term, this "super cycle" in memory chips is forcing manufacturers to reassess their supply chain resilience, product innovation capabilities, and user insight. For consumers, "buying early to enjoy early" is no longer just about experiential first-mover advantage but has become a rational risk-avoidance choice.
Price increases are occurring across all smartphone price segments. Simply put, smartphone memory consists of two main components: DRAM determines multitasking capability, directly affecting daily smoothness, while NAND flash storage relates to how many photos, videos, and applications users can store. As core components, their price trends directly determine overall device costs.
Market predictions indicate that already-released vivo X300 and X300 Pro models with top-tier memory configurations will be affected. Subsequently launched X300s and X300 Ultra models are also highly likely to see price increases due to similar configurations. The X300s is expected to start above 5,000 yuan, while the top-tier X300 Ultra may approach the 10,000 yuan mark.
The market had anticipated these developments. Samsung's new Galaxy S26 series prices increased by approximately 1,000 yuan compared to the previous generation. Honor's new foldable Magic V6 16GB+512GB version also rose from 9,999 yuan to 10,999 yuan, similarly increasing by 1,000 yuan. Xiaomi and Honor executives responding to smartphone price hikes cited "memory prices rising too much" and suggested "memory price increases may continue for two to three years."
Mid-range and entry-level products haven't been spared either. OPPO stated in an announcement that facing rising costs for multiple key smartphone components including high-speed memory hardware, it would adjust prices for certain already-released products starting March 16. Affected products include OPPO A series, K series, and OnePlus models. However, according to sources, the upcoming Find series new models will also see increases of around 1,000 yuan.
How severe are the memory chip price increases? TrendForce revised its Q1 2026 conventional DRAM contract price quarterly increase forecast from 55-60% to 90-95%, while NAND flash contract price quarterly increases were adjusted from 33-38% to 55-60%.
This has elevated memory's proportion of smartphone costs. TrendForce noted that memory previously accounted for 10-15% of smartphone material costs but has now risen to 30-40%. Raising end-product prices appears to have become necessary for maintaining operations, with brands simultaneously needing to readjust product mix or configurations to address the current memory price surge.
Why are memory chip price increases so sharp and sustained? The core reason lies in the AI industry boom "taking away" memory production capacity originally destined for smartphones. Compared to regular servers, each AI server requires approximately 8 times more DRAM and 3 times more NAND. With generative AI and large model training demands continuously climbing, major memory manufacturers are shifting capacity toward high-margin products like HBM and DDR5.
This directly compresses supply space for LPDDR memory targeting smartphones, with the supply-demand gap continuing to widen. Industry chain sources indicate AI-related memory capacity has been pre-booked by leading cloud companies, with some enterprises already negotiating supply contracts for 2027. Consumer-grade memory production quotas are being consistently squeezed.
Smartphone memory supply shortages won't ease significantly in the short term. IDC predicts memory supply challenges will persist throughout 2026 and potentially extend into 2027. TrendForce further notes that new memory factories require at least two years from announcement to production, with effective capacity only becoming available by the second half of 2027 at the earliest. This means smartphone manufacturers will face prolonged pressure from high memory cost fluctuations over the next 1-2 years.
However, this trend opens a crucial substitution window for domestic memory producers. Amid global memory capacity strategic adjustments, domestic memory manufacturers are actively promoting related product adoption in domestic smartphones, PCs, and other devices, potentially helping domestic terminal manufacturers alleviate cost pressures and ensure supply chain stability.
How will smartphone manufacturers navigate this cycle? Long-term, while this memory chip-driven price surge appears formidable, it's forcing China's smartphone industry to move beyond pure price competition. Manufacturers are being compelled to slow down and reconsider the core meaning of premiumization—robust product capability and differentiated user experiences that can support higher price segments.
Taking the imaging field as an example, mainstream smartphone manufacturers are deeply collaborating with professional imaging brands to create long-term differentiated imaging value. This can be seen as manufacturers' long-term approach to coping with supply chain price increases: if a smartphone can maintain top-tier experience for three to four years, its initial pricing may demonstrate long-term "cost-performance" advantages.
From industry trends, smartphone prices will likely continue their upward trajectory. Previously, multiple brand store staff indicated that current national subsidy policies remain in effect for models under 6,000 yuan. However, after price increases, even with subsidies applicable, the hikes will likely offset discount amounts.
This means purely waiting might risk facing subsequent further price increases, making "buying early to enjoy early" a more practical risk-avoidance choice. In this round of adjustments, vivo provided a two-day buffer period for original-price purchases, combined with other brands' pre-adjustment windows, presenting relatively rational purchasing opportunities for consumers.
For the smartphone industry, while companies face short-term cost pressures, long-term this serves as an industry filter. When price is no longer the sole competitive method, market competition focus will shift to core capabilities: only enterprises continuously investing in supply chain resilience, core technology, and user experience will navigate the volatility period and remain at the table.
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