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smartphones
2026-09-01 04:05:14

Rising memory costs push phone makers to cut flagship plans and raise prices

Chinese smartphone vendors are entering the September flagship launch season with a far weaker outlook than in prior years, according to a MarsBit report citing multiple industry bloggers. The core pressure point is memory pricing. Blogger Digital Chat Station said the procurement cost for a 12GB+256GB memory package rose from about 500 yuan a year ago to 2,200 yuan this year, a 340% jump, making storage more expensive than the SoC in some handset bill-of-materials calculations. Another blogger, RD Observation, said several vendors have cut planned flagship output by 30% to 50%. The report also said price increases are now spreading across product tiers: lower-end devices could move into the 2,500-3,500 yuan range with 6GB memory starts, midrange and upper-midrange models may reach 4,000-5,000 yuan with 8GB starts, and flagship models could open around 5,500 yuan, 7,000 yuan, and 8,000 yuan depending on trim. The pressure is already visible in shipment data. Xiaomi reported second-quarter smartphone shipments of 31.2 million units, down 26.5% year over year, while IDC estimated total shipments by Chinese phone makers at about 66.01 million units in the quarter, down 4.3%. The report said vendors are now leaning harder on higher-priced models to protect margins, even as some upcoming flagships are expected to launch with lower memory configurations than previous generations.

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Rising memory costs push phone makers to cut flagship plans and raise prices
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