Huawei executive warns memory-price squeeze could force phone prices up

Lead

Richard Yu (余承东), an executive at Huawei (华为) who chairs the company’s product investment review committee and oversees its consumer business, warned at the Pura-series launch that smartphone makers are under “very large” pricing pressure and that retail prices “may rise later” if margins can’t absorb rising component costs. The comments came as Huawei unveiled the Pura 90 and Pura X Max; the warning was the bluntest assessment yet from a major Chinese vendor on the risk of industry-wide price increases.

Why memory is rising

Yu outlined four overlapping pressures driving mobile DRAM and NAND costs: explosive AI compute demand siphoning capacity, production discipline among the sector’s dominant suppliers, industry inventories having hit bottom, and a transition gap between DDR4 and DDR5 product lines. Together, he said, these make upward price moves hard to avoid. Several Android brands have already reacted: OPPO and OnePlus adjusted prices from March 16, vivo and iQOO did so from March 18, and Xiaomi/Redmi implemented changes from April 3.

Market fallout and geopolitics

The supply squeeze is taking place in a market dominated by a handful of manufacturers, and it has been reported that Apple is buying large volumes of available mobile DRAM—reportedly even at slim operating margins—to secure stock, a move that could tighten availability for rivals. Geopolitical tensions and export controls have also reshaped global semiconductor supply chains in recent years, complicating sourcing for Chinese phone makers and reducing the leeway they have to absorb cost shocks.

What comes next?

Who will pay? Consumers, brands, or component suppliers? Industry observers note Apple’s strong services revenue gives it more flexibility to offset hardware pressure, while most Android vendors must choose between trimming margins or passing costs on to buyers. For Western readers unfamiliar with China’s market: expect more intermittent price tweaks rather than a smooth adjustment, and watch memory contract prices and OEM inventory cycles for the next clear signal.