New launches are expected to be priced higher than the previous generation, particularly for higher memory variants. In contrast, Huawei has maintained stable pricing and offered promotional discounts on older models such as the Mate 80 series. Besides, the newly launched Enjoy 90 series also performed strongly, with first-week sales exceeding 235K units, supported by competitive pricing and solid product features. These factors have collectively supported Huawei’s share expansion in the domestic market, especially as peers implement price increases.

Apple is widely regarded as best positioned to navigate the memory crisis. Its premium product mix and strong supply chain management provide a structural advantage in absorbing cost pressures. We have not observed any price increases or reductions for iPhones so far. Even if memory prices remain elevated over the long term, Apple can mitigate the impact by adjusting base memory configurations or selectively increasing prices for higher-storage Pro models. In the short to medium term, however, it is more likely to absorb cost increases internally and accept some margin compression to support continued market share growth. As Chinese OEMs move mid-range models into the premium segment (above RMB 4,000) and further raise high-end prices, the price gap with iPhones is narrowing, lowering the psychological barrier for consumers to choose iPhones.

Looking ahead, the price increase of LPDDRx is expected to persist through the end of 2027. As a result, the competitive landscape in the Chinese smartphone market is likely to undergo structural adjustments this year. If memory prices stabilize or decline, the extent to which handset prices would follow will depend on whether OEMs have already established a new price anchor, as well as the industry’s ongoing shift from “extreme value-for-money” toward “value-driven pricing”. This transition ultimately reflects a broader rebalancing between profitability and long-term sustainability.