TECH

Memory Chip Surge Forces Chinese Smartphone Makers to Raise Prices

Published: Mar. 16, 2026 10:45 p.m. GMT+8

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An Oppo store in Shanghai. Photo: VCG

Chinese smartphone makers OPPO and Vivo are raising the prices of some of their handsets, citing a sharp and sustained increase in the cost of memory chips that is sending shockwaves through the consumer electronics industry.

Vivo announced on its official website on March 16 that it will adjust the suggested retail prices of some products starting March 18, attributing the move to the “continuous sharp rise in the cost of global semiconductors and memory.”

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OPPO and Vivo are raising smartphone prices due to a sharp rise in memory chip costs, with DRAM and NAND flash prices rising over 50% and 90% respectively in Q1 2026.
Bill of materials for phones has increased by 11%-25% for most models, with high-end models' costs rising by $100-$150; retail prices are expected to increase by $30-$200 in 2026.
Industry-wide, smartphone shipments are projected to drop by 10.5% in 2026 due to higher prices and suppressed consumer demand.

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Who’s Who

OPPO: OPPO, a Chinese smartphone manufacturer, announced on March 10 that it would raise prices for certain models, including A and K series phones and its OnePlus brand, effective March 16. The company attributed these increases to the rising costs of key components, particularly high-speed memory hardware. This decision reflects an industry-wide challenge driven by a sharp surge in memory chip prices.

Vivo: Vivo, a Chinese smartphone manufacturer, announced price adjustments for some products starting March 18. This decision was attributed to the "continuous sharp rise in the cost of global semiconductors and memory." This move reflects the significant pressure faced by the entire smartphone industry due to soaring memory chip costs.

Xiaomi Corp.: Xiaomi Corp.'s president, Lu Weibing, acknowledges the significant strain on the smartphone sector due to rising memory chip costs. He noted that Xiaomi is also struggling with these increased expenses and had warned in November 2025 that these costs would severely impact profit margins and lead to "relatively large increases" in retail prices. Lu observed that first-quarter memory prices in 2026 were approximately four times higher than the previous year.

Meizu: Meizu, facing immense pressure from surging memory chip costs, announced on February 27 that it would suspend domestic smartphone hardware development. The company stated that the recent rise in memory prices made commercializing new products impossible for them, underscoring the existential challenges faced by smaller players in the smartphone sector amidst industry-wide cost increases.

Honor: Honor's CEO, Li Jian, acknowledges the industry-wide memory shortage as a significant problem. He emphasizes that companies need to develop resilience to navigate these difficult periods, strengthening their technological, product, and market capabilities to be prepared for when conditions improve.

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What Happened When

November 2025：: Lu Weibing, president of Xiaomi, warned that rising memory costs would significantly squeeze profit margins and could lead to 'relatively large increases' in retail prices.

February 27, 2026：: Meizu announced it would suspend its domestic smartphone hardware development, citing the recent surge in memory prices.

March 10, 2026：: OPPO announced it would raise prices for certain existing models, effective from March 16, 2026.

March 10, 2026：: Honor CEO Li Jian spoke at a product launch, describing the memory shortage as an industry-wide problem.

March 16, 2026：: Vivo announced it will adjust the suggested retail prices of some products starting March 18, 2026.

March 16, 2026：: Lu Weibing acknowledged the strain on the smartphone sector, stating that he understood the price increases.

March 16, 2026：: OPPO's price increases for certain models become effective.

First quarter of 2026：: According to Counterpoint Research, DRAM prices jumped more than 50% quarter-on-quarter and NAND flash memory prices soared by over 90%; BOM cost increases were observed for low-end and mid-range phones.

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