The shortage of memory led to a sharp increase in the cost of Chinese smartphones

The Chinese smartphone market is experiencing an unprecedented price surge

According to *Nikkei Asian Review*, Chinese manufacturers are forced to raise prices due to memory shortages and rising costs. This has become the most widespread price jump in industry history: almost every brand, as well as the entire range of price segments, has been hit.

Problems for small manufacturers

Experts note that low‑end models will suffer the most from rising memory costs. Small brands may be forced to exit the market: in a chip shortage, they simply cannot secure enough volume.

At the end of last month, *Meizu Technology* announced a halt to new device development; its smartphones disappeared from Taobao, leaving only accessories.

Apple capitalizes on the situation

Apple has taken advantage of falling memory prices by offering more affordable options: the iPad Air with an M4 processor and the iPhone 17e (with government subsidies) at $579. In the smartphone segment above $1,159, the company already dominates China – a share of over 70 %.

Strategies of major brands

*Omdia* representatives predict that Chinese manufacturers may sacrifice part of their profit to keep competitive prices. Introducing AI features should stimulate demand for new models even with rising prices.

- Average increase in smartphone cost: ≈ 18 %.
- Flagship models could rise by more than 30 %.
- An increase in average lifespan from 28 to 33 months is expected.

Short‑term and long‑term trends

* The market will consolidate around major players (Apple, Huawei, Xiaomi, Samsung).
* Price‑sensitive buyers will shift to the secondary segment.
* From March of this year, new smartphone prices in China are expected to rise by 15‑25 % (*Counterpoint Research*).
* According to *IDC*, the global smartphone market will shrink by 13 % this year, with a first‑quarter decline of 6.8 %.
* *MediaTek* management confirms similar expectations for market dynamics.

Thus, memory shortages and rising costs have led to a record price spike in China’s smartphone segment, forcing manufacturers to rethink pricing strategies and strengthen the positions of major brands.