Reports: Memory price surge upends smartphone pricing — older models up ¥500, unreleased phones “passively” jump tiers

Price shock hits the market

It has been reported that a recent surge in memory chip prices has upended the pricing logic for 2024 smartphones. Chinese tech commentator @数码闲聊站 posted that many older models have seen retail prices rise by roughly ¥500, while some unreleased new phones have been “passively bumped into higher price tiers,” with base prices increasingly starting around ¥3,000. IT之家 (IT Home) also notes resale values for popular second‑hand models have reportedly climbed alongside new‑unit prices.

Makers and executives react

vivo (vivo) and OPPO (OPPO) have, it has been reported, confirmed price increases on already‑released models. Xiaomi (小米) group partner and president Lu Weibing (卢伟冰) weighed in on Weibo when asked about the REDMI (红米) K90, saying he understands competitors’ price rises and that “we also bear the pain,” signalling the company is feeling margin pressure. Lu previously told media this memory price cycle could be long — he estimated higher storage costs could persist from Q2 2025 through the end of 2027.

Why this matters — and what’s driving it

The immediate cause is tighter DRAM/NAND supply and rising contract prices at component level; dealers and some retailers have reportedly told customers new device markups may range from ¥500 to ¥2,000. Broader forces are at work too: global demand for memory from data‑center and AI workloads, pandemic recovery patterns, and supply‑chain shifts tied to export controls and geopolitical tensions have all complicated capacity planning for memory makers. For Western readers: when component costs jump in China’s highly competitive smartphone market, manufacturers often pass the increase to consumers quickly — unlike past years when aggressive subsidization kept headline prices stable.

Consumers face a clear choice: buy now or risk paying more later. Manufacturers and retailers appear to be reshuffling product tiers and dealer allocations in response, and it has been reported that this year’s “early‑buy” advantage may be the only reliable discount left.