Huawei plans moderate smartphone price increases to offset a sharp rise in production costs. Consumer business chief Richard Yu said the average cost of producing a smartphone has risen by $200 per unit, mainly because of a global memory-chip shortage and higher prices. [1, 4] The adjustments coincide with the launch of Huawei’s new Mate 90 series. [3, 12, 14]
The move reflects a broader industry trend affecting major electronics brands, including Apple and Xiaomi, which have also raised prices. [1] Demand for high-bandwidth memory (HBM) in AI data centers is worsening the shortage because it competes with conventional smartphone memory for manufacturing capacity. [4, 7, 8] Memory has become the most expensive component in a smartphone, putting pressure on profit margins across the sector. [1, 17]