The golden age when Chinese mobile phones were synonymous with bargains is numbered. Xiaomian, OPPOVivo, Honor, and OnePlus are preparing to raise the prices of their smartphones. after several quarters of enduring a continuous increase in the price of memory and storage that they can no longer absorb without jeopardizing their profitability.
According to supply chain sources in China, DRAM and NAND contracts have accumulated year-on-year increases of more than 80%. In some cases, this escalation, which began accelerating in late 2024, intensified in 2025 and finally exploded in 2026. The industry has reached a point where continuing to offer more capacity at the same price is simply no longer profitable.
A historic price increase by March 2026
The major Chinese phone brands have reportedly reached an agreement a coordinated price increase starting in March 2026This is shaping up to be one of the most extensive adjustments in recent years within its domestic market. It's not a minor tweak, but a in-depth review of rates which will break with the usual downward competition dynamic.
Memory has been placed at the center of the problem. Mid-range and high-end smartphones have normalized configurations of 12 GB of RAM and 256 GB of storage as a starting point, while the more advanced models already offer 16 GB and 512 GB with technologies such as LPDDR5X and UFS 4.0, considerably more expensive than previous generations such as DDR4 or UFS 2.x/3.x.
In this context, when DRAM and NAND increase by more than 80% year over year in certain contracts, the impact on the total cost of the device (BOM) The impact is immediate and significant, regardless of whether the brand is called Xiaomi, OnePlus, Honor, or OPPO. Maintaining unchanged selling prices would mean operating with minimal margins or even losses.
Various reports suggest that The planned adjustment could be the largest in the last five years For these companies, their business model, based on tight margins and aggressive pricing to gain market share, has run headlong into a harsh reality: key components are too expensive to continue selling at the same low prices.
In some specific cases, the shift has already begun to be noticeable. Products such as the Xiaomi Pad 8, Pad 8 Pro tablets or the Redmi Pad 2 series They would have been among the first to reflect an increase of between 10% and 15% compared to 2025 prices, and this same trend is expected to extend to families like Redmi Note 15, Xiaomi 17 or the next POCO scheduled for 2026.
The role of memory: from bargain to technological "tax"
The direct trigger for this shift is the dizzying increase in the price of RAM and flash storageInformation from the supply chain indicates that The cost of acquiring these chips has skyrocketed by more than 80%.Meanwhile, major suppliers like Samsung are reportedly applying price increases of over 60% in certain agreements.
For manufacturers like Xiaomi, vivo, Honor, OPPO or OnePlus, which operate with much lower profits per unit than AppleA price increase of this magnitude for an essential component is a direct blow to their bottom line. Memory is not something that can simply be cut back or replaced with a significantly cheaper alternative if they want to remain competitive.
For much of 2025, these companies tried to weather the storm by adjusting on other fronts: Logistics optimization, cuts in less visible components, or a reduction in promotionsHowever, the room for maneuver has been dwindling quarter by quarter, while the bullish cycle of memory showed no signs of cooling down.
The underlying problem is a supply chain under severe strain following the rebound in the memory cycle that began in late 2024Each contract renewal has been accompanied by further increases, accelerating a process that, far from moderating, has intensified at the beginning of 2026.
While some older technologies, such as DDR4, are starting to become cheaper due to obsolescence, Cutting-edge solutions like LPDDR5X and UFS 4.0 are driving demand and price increasesThe problem for the consumer is that these are precisely the types of memory used in the most attractive devices in terms of performance/price ratio.
A tactical alliance between Chinese brands
In this scenario, the decision to raise prices in a coordinated manner It's more about survival than a simple business strategy. None of these companies wants to be the only one maintaining low rates while single-handedly absorbing the extra cost of the chips, because That would make it less competitive compared to the rest. in a market where margins were already very tight.
The key that these brands seem to have internalized is that Negotiating with memory giants like CXMT or YMTC becomes much more complicated if each one goes its own way.A united bloc has more strength to negotiate conditions, or at least to distribute the impact of the increases among all without any one being at a disadvantage.
Furthermore, this coordinated movement avoids what many feared: an internal price war in China While providers continue to raise prices, if they all adjust their rates simultaneously, none will engage in unfair competition at home and can concentrate their efforts on to measure strength against foreign manufacturers, both in the Chinese market and in other territories.
In the West the situation is different. Large manufacturers tend to act more independentlyWithout explicit coordination similar to that emerging in China, some Western players may be left in a vulnerable position against a bloc of Chinese brands arriving with slightly looser margins after the adjustment.
In any case, the internal message is clear: It's not just about protecting profits, but about preventing one brand from bearing the entire additional cost alone. and fall behind in price in the medium term. In an environment where sales volume is no longer growing at the rate of a few years ago, sacrificing profitability has become a luxury few can afford.
How will this affect consumers in Spain and Europe?
Although the information comes mainly from China, It is reasonable to expect that the price increase will be passed on to the recommended prices in Europe and Spain.At least in part. The same memory chips used in phones sold in the Chinese domestic market are also used in the global versions, so the extra cost will ultimately affect the European retail price, directly or indirectly.
Users will most likely begin to notice the change in several directions: clear price increases in certain models, disappearance of some "bargain" prices which had become commonplace and a certain rethinking the base configurations to contain the impact.
Among the scenarios being considered, two main avenues for adjustment are being explored. On the one hand, accept that the consumer pays more for the same amount of memoryThis could translate into double-digit percentage increases compared to previous generations. Alternatively, they could introduce slightly more modest variants, for example, with 8 GB of RAM and less storage, to maintain psychologically attractive prices.
In Europe, the importance of could also grow Special promotions, launches with introductory offers, or bundles with accessories To soften the perception of a price increase without sacrificing the new price level, this strategy would allow brands to continue communicating added value, even if the base cost of the hardware is higher.
For those looking to upgrade their mobile phone in 2026, The window of opportunity will be in locating offers from previous generations. that still offer interesting configurations, but haven't fully incorporated the impact of the latest memory upgrades. However, as stock dwindles, it will become increasingly difficult to find bargains like those of previous years.
A changing of the guard for the era of cheap mobile phones
The move by Xiaomi, OPPO, vivo, Honor and OnePlus It marks a turning point for the idea of ​​"cheap Chinese mobile" that had become ingrained in the collective imagination. over the last decade. The combination of rising memory prices, market maturity, and slower growth in units sold has brought an end to that era in which each generation offered more for the same or even less money.
Forecasts for the remainder of 2026 They do not exactly point to an immediate relaxation of costsIf the supply of memory chips does not increase significantly and prices remain tight, further upward revisions throughout the year are possible, both in the Chinese market and in other countries where these brands have a strong presence.
To all this is added another factor: the increasing integration of artificial intelligence features in smartphonesThese capabilities typically require more RAM and more storage, which indirectly fuels the demand for advanced memory components, precisely those experiencing the greatest price pressure.
The industry thus faces a delicate balance: continue offering powerful mobile phones with integrated AI without driving up the final priceIf consumers are unwilling to pay more for the same product, brands may be forced to cut costs in other areas, adjusting cameras, screens, or materials to offset the cost of the memory.
Everything suggests that the coming months will be a kind of stress test for the market. The industry will test to what extent users are willing to accept slightly more expensive mobile phones. Or whether it will force manufacturers to rethink their configurations and business strategies. What does seem clear is that the formula of always offering more for less has reached its limit, and Chinese brands have been forced to slow down.
