Chinese Smartphone Makers Resist Memory Chip Price Hikes

Multiple Android manufacturers among China's top six smartphone brands have formally refused proposed price increases for memory chips from suppliers for upcoming quarters. Reports indicate that disagreements extend beyond consumer memory to include chips destined for AI servers.

Industry sources confirm that companies such as OPPO and vivo have rejected Samsung Electronics' pricing for storage products in the third quarter of 2026. Despite Samsung's proposal representing a smaller increase of approximately 20% compared to earlier hikes of 90-95% and 58-63%, downstream clients have opted against placing new orders.

Prices for storage chips have surged significantly since the latter half of 2025. This sharp increase is attributed to the booming demand for AI computing power, which has shifted production capacity towards high-margin products like High Bandwidth Memory (HBM). Consequently, the supply of consumer-grade DRAM has been severely constrained, leading to a near 300% cumulative price increase for memory components compared to the same period in 2025.

The cost pressure on smartphone makers is substantial, with memory chips' share of the total bill of materials for a device escalating from 10-15% to over 20%. In some budget models, this proportion can reach 30-60%, forcing all major manufacturers to implement price adjustments on their products.

OPPO and vivo's resistance is bolstered by their diversified supply chains. Alongside major suppliers like Samsung, SK Hynix, and Micron, domestic manufacturers such as Changxin Memory (CXMT) and Yangtze Memory Technologies Corp (YMTC) offer alternative sourcing options. Changxin Memory has become the world's fourth-largest DRAM producer and is already integrated into the supply chains of brands like vivo and OPPO.