Are Flagship Phones Price Hikes Inevitable? Your New Phone Might Be Significantly More Expensive This Year!

Are Flagship Phones Price Hikes Inevitable? Your New Phone Might Be Significantly More Expensive This Year!Following the official launch of the vivo X200 series on October 14th, as the industry predicted, the starting price has risen from CNY 3,999 to CNY 4,299, a three-hundred yuan increase. This is considered a difficult move for vivo, and it's safe to predict that upcoming flagship models from other manufacturers will see price increases as well, with the question being how much each brand will adjust their pricing

Are Flagship Phones Price Hikes Inevitable? Your New Phone Might Be Significantly More Expensive This Year!

Following the official launch of the vivo X200 series on October 14th, as the industry predicted, the starting price has risen from CNY 3,999 to CNY 4,299, a three-hundred yuan increase. This is considered a difficult move for vivo, and it's safe to predict that upcoming flagship models from other manufacturers will see price increases as well, with the question being how much each brand will adjust their pricing. Redmi General Manager Wang Teng has provided an explanation for this year's flagship price hikes, citing two primary reasons:

1. Increased Costs for Processor Manufacturing Processes

This year's flagship processor chips, used in flagship phones, are all manufactured using TSMC's 2nm process, leading to a substantial cost increase compared to the previous 4nm process. Neither Qualcomm nor MediaTek can shoulder this cost burden alone, and it must be passed on to the final products. This has resulted in price increases for both the Qualcomm Snapdragon 8 Gen 4 and MediaTek Dimensity 9400 chips, inevitably increasing the cost of flagship phones. Maintaining previous price points is simply not an option.

2. Memory Prices Have Reached Their Peak

Wang Teng pointed out that memory prices have been steadily climbing throughout the past year, reaching their peak currently. Therefore, the price increases for models with larger memory capacities are even more pronounced. This is one of the most direct reasons for the price hikes. Furthermore, high-memory smartphones have become the mainstream, making it virtually impossible to lower prices. Wang Teng suggests that those seeking large memory options should "buy while you can."

Beyond processor and memory price increases, each manufacturer customizes the screens for their flagship phones, resulting in significant additional costs. These custom screens are exclusively used by the manufacturer and are not compatible with rival models. If sales are strong, it's a win. But if sales are weak, it essentially increases the cost of each individual unit sold. Screen manufacturers are not known for flexibility, and you pay the price they set.

All things considered, the three core components of a smartphoneprocessor, memory, and screenhave all experienced price hikes, making a price increase for the final product inevitable. Otherwise, manufacturers would be losing money. However, Wang Teng's statement may also carry a deeper meaning: a hint that the upcoming Xiaomi 15 series and Redmi K80 series will also see price increases. The former's price increase is a certainty, as Lei Jun stated a year ago that CNY 3,999 was the final starting price, and they would not be able to go lower. The latter's price increase remains to be seen, as Redmi is known for its value-for-money offerings.