Yu Chengdong: Memory Price Hikes Will Drive Large-Scale Smartphone Price Increases
N.R. Finch
Huawei's Yu Chengdong said on August 5 that memory prices have risen sharply and all smartphones may need significant price increases — otherwise manufacturers will be selling at a loss. The cost pressure has reached the consumer end.
What exactly did Yu Chengdong say?
At Huawei's August 5 product launch, Yu Chengdong (余承东), chairman of the Consumer BG, stated that memory prices have surged.
His phrasing: "all smartphones may need large-scale price hikes going forward" — not just Huawei's own lineup.
Without raising prices, phone makers would be selling at a loss under current pricing.
Why does a memory price spike force phone prices up?
Memory — the chip inside a phone that handles short-term data storage — is one of the highest-cost components in a smartphone.
This means → when memory procurement costs jump, manufacturers' margins get squeezed directly; internal cost-cutting can no longer absorb the hit.
In plain terms = parts cost more, phones don't get more expensive, every unit sold loses money. No maker can sustain that.
What does this signal for consumers and the industry?
Yu's language pointed to "all smartphones," not just Huawei's product line — this reflects his view that the entire industry faces pricing pressure.
This means → price increases may not be limited to flagships; mid-range and budget phones could follow, raising upgrade costs across the board.
The statement itself is a market signal: an industry-wide repricing may be brewing, and Huawei is getting ahead of it publicly.
Content is for reference only, not financial advice.