Main points
- Due to the shortage and rising cost of memory chips, smartphone prices in China have increased in all segments, including budget models.
- Big brands like Apple benefit from the situation by offering relatively affordable new products, while small manufacturers face problems due to priority in supplying chips to big players.
The smartphone market has been hit by a price increase / Collage of Channel 24 / Photo Depositphotos
The Chinese smartphone market has been hit by a sharp price hike due to a shortage of memory chips and their price hike, affecting almost all brands and price categories. Analysts warn that the consequences could change the structure of the market and push out some small manufacturers.
According to experts, the Chinese smartphone industry is experiencing the largest price increase in the history of the market, reports 24 Channel .
Why are smartphones in China so expensive?
The main reason is the shortage of memory chips and their rising cost, which directly affected the cost of mobile devices. As a result, almost all models, from budget to flagship, are becoming more expensive.
New smartphones were among the first to experience the price increase. For example, the recently introduced Redmi K90 and iQOO 15 have increased in price compared to previous generations by approximately $14.5 to $87, as Nikkei Asian Review recently reported.
In the mid-range segment, prices have already increased by about 20%. Moreover, manufacturers are preparing new “cost adjustments” – at the beginning of the month, Xiaomi, Oppo, and Vivo plan to raise prices for their models again.
The situation with the Transsion brand, which is actively operating in African markets, was particularly revealing. Its new Ultra flagship was priced at around $750, while previous Note 60 Pro devices typically cost between $500 and $600.
What will happen to budget models?
Experts note that budget smartphones will suffer the most from the increase in memory prices. Leading IDC experts warned about this last year. For manufacturers of such devices, even a small increase in the cost of components has a serious impact on the final price. Small companies will have an even more difficult time: during a shortage, large brands get priority in the supply of chips, and small players may simply not have enough.
The first signs of trouble are already visible. Late last month, Meizu Technology announced it was suspending development of new smartphones. In addition, all of its phone models have disappeared from the popular Chinese marketplace Taobao – only accessories remain for sale.
Market leaders only win
Interestingly, global brands are winning against the backdrop of rising prices for budget devices. For example, Apple took advantage of the situation and offered Chinese buyers relatively affordable new products – the iPad Air tablet with an M4 processor and the iPhone 17e smartphone.
Including government subsidies, it can be purchased for about $579. In the premium segment, priced at more than $1,159, Apple already controls over 70% of the Chinese smartphone market.
Interesting fact! The price increase will affect all technology, as previously reported by the WSJ. This primarily concerns the computer components market, but almost all electronics will suffer.
How will the smartphone market change?
Omdia analysts predict that Chinese manufacturers will try to hold down prices by reducing their own margins. At the same time, companies will focus on new features – primarily the integration of artificial intelligence – to encourage buyers to upgrade smartphones even despite the increase in price.
According to experts, the average price of smartphones from Chinese brands could increase by about 18%, while flagship models could become more expensive by more than 30%. As a result, users will start using their devices for longer: the average operating cycle could increase from 28 to 33 months.
The market will gradually concentrate around the biggest players – Apple , Huawei , Xiaomi and Samsung . Buyers who are particularly price-sensitive will increasingly turn to the secondary market.
Counterpoint Research analysts expect that the average cost of new smartphones in China will increase by 15-25% starting from March. At the same time, the overall situation in the industry looks difficult: according to IDC, the global smartphone market may shrink by about 13% this year. In the first quarter alone, the decline may be 6.8%.
So maybe now is a great time to choose a smartphone, as it may be a device you will have to use for the next few years. By the way, we recently selected the 5 most popular smartphones of February 2026 among users based on benchmark results.