Vivo raises smartphone prices as chip costs surge

Vivo said it would raise suggested retail prices for some smartphone models from March 18, citing sharp increases in global semiconductor and memory costs, the company said in a statement.

Rival Oppo earlier raised prices on A series, K series, and some OnePlus models from March 16 with increases of 200 to 500 yuan (US$29 – US$72,51).

Industry analysts said memory chip prices have surged more than 300% over the past three months and have pushed up smartphone manufacturing costs.

Analysts said the recent moves point to a broader wave of price increases across the industry that could extend into the second half of the year.

🔗 Source: TechNode

🧠 Food for thought

Implications, context, and why it matters.

Memory costs have reshaped smartphone manufacturing economics

Memory once made up 10–15% of a smartphone’s bill of materials (the total cost of components inside a device). It now takes 30–40% of the total cost 1.
Contract prices for a mainstream 8GB + 256GB memory configuration in the first quarter of 2026 jumped nearly 200% year-on-year. That puts costs at about three times the level from the same period last year 2.
Analysts cited by CNET tie the squeeze to AI data center expansion. That demand tightens supply, lifting prices for the memory and storage chips used in phones 3.

The memory crunch adds pricing pressure as the market cools

Global smartphone shipments are expected to drop to 1.1 billion units this year. Counterpoint data cited by Yicai puts that at more than 12% below last year, the lowest since 2013 4.
Some brands are raising prices on cheaper phones. Oppo said prices for some already released Oppo and OnePlus models, including the Oppo A and K series, will rise from March 16, without saying by how much 4.
Some premium brands are cutting prices to chase market share. Yicai pointed to Apple promotions in China and Huawei discounting the Pura 80 Pro in offline stores during the Chinese New Year holiday, after discounts and government subsidies 4.
Entry-level players such as Xiaomi and Transsion face the biggest risk. Their price-sensitive customers leave little room to pass along higher costs 1.