China’s smartphone market is experiencing a fresh wave of price increases amid tightening supplies of key semiconductor components, industry sources say. Leading domestic manufacturers Huawei, Xiaomi, and Honor have raised retail prices on several existing models in recent days, with hikes ranging from 200 to 1,000 yuan ($30 to $150), stirring considerable discussion on social media platforms.
Huawei led the recent adjustments, increasing prices on its Mate 80 series by up to 1,000 yuan and adding 200 yuan to the Mate 90 Pro Max. Xiaomi, which had already implemented a price revision on August 2, further raised the Xiaomi 17 and 17 Pro by 300 yuan each earlier this week. Honor followed suit with increases of 500 to 600 yuan on its Power2 variants and adjusted its Magic8 flagship range by 300 to 500 yuan per model, bringing prices to between 4,799 and 5,999 yuan.
A Huawei customer service representative attributed the price hikes to “market prices of key materials” driving higher production costs. Analysts point to a structural shortage in global memory chip supplies as a primary factor behind the surge. Major memory manufacturers—including Samsung, SK Hynix, and Micron—have redirected significant production capacity towards high-bandwidth memory (HBM) used primarily in AI servers, limiting availability of DRAM and NAND chips for smartphones. This shift has resulted in a five- to sevenfold increase in mobile memory prices since early 2025, according to market research firm TrendForce.
The cost pressures extend beyond memory. Qualcomm Inc. CEO Cristiano Amon announced a planned price increase for the company’s chips from September 1, citing a general rise in supply chain expenses. This means smartphone makers are facing simultaneous cost hikes in both memory and system-on-chip (SoC) components, intensifying the financial strain and prompting price adjustments across the industry.
Unlike previous price increases, which typically coincided with new product launches tied to upgraded features, the current wave is characterized by direct price rises on devices already available in the market. Xiaomi’s repeated price increases within a month suggest manufacturers are choosing to pass on costs gradually rather than implementing a single large surge.
Top executives had forewarned of the trend. On August 5, Huawei’s Yu Chengdong, executive director and chairman of the company’s terminal business group, indicated that sustained high memory prices would necessitate widespread smartphone price hikes to avoid losses. Similarly, Xiaomi President Lu Weibing projected in May that flagship phone prices in China could exceed 10,000 yuan during the year’s second half.
The sector has been adjusting prices since late 2023, with nearly all major brands—including Samsung, Oppo, Vivo, Huawei, and Honor—increasing prices to various extents. Mid-range and entry-level models typically saw rises of 300 to 500 yuan, while premium flagships and foldables recorded hikes surpassing 1,000 yuan.
Meanwhile, China’s smartphone shipments have continued to decline. Data from International Data Corp shows second-quarter shipments at approximately 66 million units, down 4.3 percent year-on-year. First-half shipments totaled about 134 million units, a 4.2 percent decrease compared with the same period in 2024, reflecting ongoing market contraction amid rising device costs.