Mar 09, 2026 21:00:00

The Chinese smartphone market is facing a severe memory shortage, causing record price hikes and forcing some manufacturers to suspend new product releases.

China's smartphone market is facing an 'unprecedented' wave of price hikes, with both new and older models likely to see price hikes, primarily due to a memory shortage.

Chinese Smartphone Prices Are Set to Rise Soon as Memory Costs Surge, Sources Say

https://www.yicaiglobal.com/news/china-smartphones-face-first-2026-price-wave-as-memory-costs-surge-90

Domestic Mobile Phones Forced to Hike Prices: Tough Times Ahead
https://eu.36kr.com/en/p/3711113898914177

As demand far exceeds supply due to the development of AI, prices of DRAM , NAND flash memory , and HBM have all reached record highs. According to smartphone retailers, prices of low-end models in the Chinese smartphone market have risen by 600 to 1,000 yuan (approximately 14,000 yen), and prices of mid- to high-end models may rise by 2,000 to 3,000 yuan (approximately 46,000 yen).

The price hikes are likely to affect not only new models but also existing models, and retailers say that if memory prices remain high, there is a possibility of multiple price hikes.

According to research firm Counterpoint Research, memory prices in the first quarter of 2026 are already 80% to 90% higher than in the fourth quarter of 2025, with DRAM, NAND, and HBM all hitting record highs.

The main factor behind this is the sharp rise in prices of DRAM for general-purpose servers. Prices of NAND flash memory, which had remained relatively stable in the fourth quarter, have risen by 80% to 90% this quarter, and some AI-specific HBM3e memory prices have also risen further, indicating that price increases across the board are accelerating.

One retailer said supplies of popular smartphone models, especially those with larger memory caps, were already tight, leading manufacturers to prioritize higher-margin configurations.

Xiaomi CEO Lei Jun explained that 'the rapid development of AI has significantly increased demand for memory chips,' and

acknowledged that rising memory component prices are putting significant pressure on Xiaomi's smartphone business and other related product lines. While acknowledging that manufacturers are facing a tough cost situation, Lei Jun said that rather than passing on the entire cost increase directly to consumers, the company is exploring various approaches to reduce the burden on buyers.

Meizu announced that it will suspend its own hardware projects for new domestic smartphone models and actively seek cooperation with third-party hardware partners. Meizu stated, 'While many brands have chosen strategic downsizing, we have made every effort to maintain normal generation updates, even if it was difficult. However, the rapid changes caused by special factors in recent years have made it impossible to successfully commercialize next-generation products. We have proactively chosen to suspend our own projects in order to focus resources on the capabilities of our Flyme software ecosystem.'

An executive at a smartphone manufacturer pointed out that 'how long the emphasis on high-margin products will continue depends on when investment in AI computing power slows down,' adding that if the pace of AI-related capital investment slows, the supply and demand balance for general-purpose memory could stabilize.