The proportion of memory in the total cost of mobile phones has risen from 13% to 43%: no one can avoid this round of price hikes.

On the afternoon of August 5, 2026, a statement that few people in the mobile phone industry are willing to say publicly was finally brought to light.

Yu Chengdong, Executive Director of Huawei, Director of the Product Investment Review Committee, and Chairman of the Terminal BG, stated at Huawei's new product launch conference that memory prices have risen sharply, and all mobile phones may see large-scale price increases later, otherwise selling at the original price will result in losses (Source: Sina Finance, August 5, 2026).

This is not a forecast, but a retrospective confirmation. Just three days ago, on August 2, 2026, media reports already stated that a leading domestic mobile phone manufacturer raised the prices of several of its flagship models, with an increase ranging from 300 yuan to 500 yuan (Source: Reposted report by Sina News, August 2, 2026; the specific models and price adjustment ranges are subject to the official announcement from the manufacturer). The price tags changed first, and the explanations came later.

For ordinary people, what they really need to figure out is not who raised prices first and who raised them later, but who exactly took away the extra 300 to 500 yuan.

Three figures to start with

The first figure is 13%. According to the cost tracking of Counterpoint Research, in the first quarter of 2025, DRAM and NAND flash memory together accounted for only about 13% of the bill of materials for a single mobile phone (Source: Counterpoint Research, as relayed by ZOL and Sina Finance, August 1, 2026).

The second figure is 43%. The same institution predicts that by the third quarter of 2026, the combined proportion of these two components in the bill of materials will rise to 43% (Source: Counterpoint Research, as relayed by ZOL and Sina Finance, August 1, 2026).

The third figure is 30%. Since the second half of 2025, global storage chip prices have started to rise. By the first quarter of 2026, the cumulative increase of mainstream consumer-grade high-speed storage products has exceeded 30%; after entering the second quarter, the upward trend has not slowed down (Source: Industry data relayed by ZOL and Sina Finance, August 1, 2026).

Putting these three figures side by side, the structure becomes clear: the most expensive component in a mobile phone has changed its leading position in about six quarters. In the past, the largest cost item for mobile phones was usually the main chip, and storage was the second largest item after it; now storage has climbed to the first place.

Key data: The combined proportion of DRAM and NAND in the mobile phone bill of materials rose from about 13% in the first quarter of 2025 to an estimated 43% in the third quarter of 2026; the cumulative increase of mainstream consumer-grade high-speed storage in the first quarter of 2026 has exceeded 30% (Source: Counterpoint Research, as relayed by public reports, August 1, 2026).

Cheap phones are more affected than expensive ones

The storage price increase applies equally to all models, but the pain is completely different at different price points.

The calculation from Ping An Securities illustrates this difference: comparing the bill of materials cost structure in the third quarter of 2025 and the first quarter of 2026, among smartphones priced below 400 USD, the proportion of storage cost in the bill of materials almost doubled in the first quarter of 2026; among models priced above 400 USD, this proportion also increased by more than 100% (Source: Ping An Securities, as relayed by CLS, August 5, 2026).

The logic is not complicated. A mobile phone priced at more than 1,000 yuan originally relies on small profits but quick turnover, and all possible cost reductions in the bill of materials have already been squeezed out; the same memory price increase will directly lead to a net loss for it. For a flagship phone priced at four to five thousand yuan, there are multiple costs such as brand premium, imaging modules, and screens that can be adjusted, with thicker buffers.

This also explains another change that consumers can directly perceive: promotions have narrowed. In previous years' mid-year big sales, mobile phone manufacturers usually used direct price cuts of 1,000 yuan to boost sales; in 2026, the discounts are generally concentrated on small direct cuts of 200 to 300 yuan or free accessories, and the actual final price of some mid-to-high-end models is even 100 to 200 yuan higher than that in the first quarter (Source: Industry observations relayed by ZOL and Sina Finance, August 1, 2026).

Where prices have not risen, configurations are quietly changing

Manufacturers have never only one way to absorb rising costs, which is to raise prices.

The first way is to explicitly raise the price tag, which is the large-scale price increase mentioned by Yu Chengdong, the most intuitive one that is most easily perceived by consumers.

The second way is to secretly reduce configurations. For the same price range, lower the storage specification by one level, or replace the originally standard high-spec flash memory with a lower-spec one. The price tag does not change, but the product itself has changed.

The third way is to cut low-spec versions. When the cost of the low-storage version can no longer be controlled, the most convenient approach is to simply stop producing it, forcing consumers to choose versions at higher price points.

The following is reasoning for readers' reference. From the perspective of cost structure, the third way has the lowest cost for manufacturers: it does not need to bear the public opinion pressure of price increases, nor does it face the risk of being exposed that the configuration has been reduced after teardown, it just lets the entry-level version disappear quietly. If storage prices remain high in the second half of 2026, what disappears first on the shelves may not be a certain brand, but several entry-level versions with specific storage specifications. This paragraph is a logical deduction based on the cost structure, and does not represent the actual plan of any manufacturer.

Takeaway framework · Three outlets for price increases: explicitly raise price tags → secretly reduce configurations → cut low-spec versions. In one sentence, you can see which outlet the mobile phone manufacturer releases the cost pressure from. When you see a mobile phone with the same price as before, don't be happy immediately, compare its storage specifications and version list first.

The mobile phone industry no longer makes money by selling more units

There is a set of data that can explain the industry background of this round of price increases.

Market monitoring from Counterpoint Research shows that in the second quarter of 2026, global smartphone market revenue increased by 7% year-on-year to 109 billion USD, hitting a new all-time high for the second quarter; but global smartphone shipments declined in the same period. The deviation between revenue trend and shipment trend is mainly driven by the rise in average selling price: the average selling price in the second quarter increased by 17% year-on-year to 400 USD, a new all-time high for the second quarter (Source: Counterpoint Research, as relayed by CLS, August 5, 2026).

In other words, fewer mobile phones are shipped, but more revenue is generated. Half of this is supported by consumers continuously shifting to high-end models, and the other half is driven by storage costs that push Android manufacturers to raise prices generally.

This is a turning point worth remembering: the main growth engine of the smartphone industry has shifted from shipment volume to unit price. This time, a considerable part of the unit price increase is not taken away by manufacturers, but paid for the upstream suppliers.

On the other side of the price increase is an industry that is re-pricing itself

The reason why storage prices have risen so sharply does not lie on the mobile phone side.

Common observations in the industry are that the demand for high-bandwidth memory and server-level storage from artificial intelligence computing power is expanding rapidly, major overseas storage manufacturers have shifted a large number of advanced production capacities to high value-added AI storage product lines, the production capacity of LPDDR and UFS used in mobile phones has been squeezed, and the supply in the consumer electronics segment has shrunk (Source: Public industry analysis, August 2026, the specific production capacity allocation ratio is subject to the disclosure of each company).

With shrinking supply and rigid demand, the price can only go in one direction. Mobile phone manufacturers are at the most downstream of this chain, with no production capacity and no alternative solutions, so they can only pass the cost down further, to the shelves, to the price tags, and finally to you.

This is the most unusual part of this round of price increases: it is not driven by overheated demand, nor is it because manufacturers want to earn more, but a top-down cost transmission. Mobile phone manufacturers are on the same side as consumers in this matter.

What does this have to do with you

The first and most direct group is people who are planning to change their mobile phones. The old phone you are still using has suddenly gained a new meaning: if you change your phone during the period of high storage prices, part of the money you pay goes to the memory. Before buying, do one more thing: list and compare the storage specifications of different versions at the same price point, which is more useful than just looking at the price.

The second group includes mobile phone distributors, second-hand recycling and accessory practitioners. The rising price of new phones will change the pricing benchmark of second-hand phones, and also change the subsidy logic of trade-in; once the entry-level versions shrink, the sales volume structure of distribution channels will change accordingly.

The third group is all people who buy electronic products with storage. Storage is not only installed in mobile phones, but also in computers, tablets, routers, dashcams, cars and graphics cards. The same chip price increase will be transmitted to different shelves and different price tags.

The only thing that can be confirmed is that starting from this launch event on August 5, 2026, the question "why are mobile phones more expensive" now has an answer that manufacturers are willing to admit publicly. As for whether this cost is worth it, you have to calculate it yourself.

What do you want to say about this? You are welcome to share your opinions in the comment section.

This article is for information sharing and industry analysis only, and does not constitute any investment advice, investment analysis opinion or transaction invitation. The data in the article comes from Yu Chengdong's public speech on August 5, 2026, Counterpoint Research's cost and market monitoring, Ping An Securities' research views, and public reports from Sina Finance, CLS, ZOL and other platforms. All data is subject to the original source. The price adjustment range of some models is based on media reports, which is subject to the official announcement of the manufacturer. The market is risky, and decisions should be made with caution. The content marked as "reasoning" in the text is a logical deduction based on public information, and does not represent the official position.

This article is from the WeChat Official Account "BT Finance" (ID: btcjv1), author: BT Finance, authorized to repost by 36Kr.