Huawei plans to raise handset prices due to memory crunch

By the Editorial Team · Friday, October 2, 2026

Huawei announced plans to moderately raise smartphone prices due to a $200 increase in production costs driven by rising memory chip prices. This price adjustment aligns with the company's strategy to capitalize on a market shift away from budget devices toward mid- and high-end models, supporting its international expansion and premium product focus.

Huawei Technologies Co. plans to increase prices on its smartphones in response to rising memory chip costs, aiming to leverage its integrated chip-to-software capabilities to maintain a competitive edge as the company expands into international markets. The company’s consumer business chief, Richard Yu, disclosed in Shenzhen that average smartphone production costs have risen by approximately $200, though he did not specify the exact timeframe for this increase.

“We’ll have to raise prices going forward, though it will be moderate,” Yu said, acknowledging the significant impact on Huawei’s profitability. Despite these challenges, Yu expressed confidence that the memory shortage would benefit Huawei by accelerating the market’s shift away from low-end devices toward mid- and high-end segments, where the company has traditionally performed strongly.

According to recent analysis by Counterpoint Research, about 230 million smartphones priced under $200 are expected to disappear from the market by the end of this decade. Yu suggested that this trend will compress demand for budget devices, which could advantage premium manufacturers like Huawei.

In line with this strategic shift, Huawei recently introduced a new series of premium smartphones, including a special edition of the Mate 90 Pro Max, which starts at 10,999 yuan (approximately $1,640). This launch underscores the company’s focus on higher-end offerings amid industry-wide cost pressures.

Global smartphone producers, including Apple Inc. and Xiaomi Corp, have also faced margin pressure this year as the proliferation of artificial intelligence technologies has driven up demand and prices for key components. All three companies increased their device prices in September to offset escalating costs.

Meanwhile, consumer demand for smartphones in China has weakened, with weekly sales declining by double digits year-over-year since July, according to Counterpoint Research. This softness in the domestic market further challenges manufacturers as they navigate the ongoing memory supply constraints and shifting consumer preferences.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.