TLDR
- Huawei says it will raise smartphone prices again due to rising memory chip costs
- Average smartphone costs have already climbed by $200, according to consumer business chief Richard Yu
- Huawei expects budget phones under $200 to disappear from the market by 2030
- The company’s net income fell 36% in the first half of the year
- Huawei plans to expand premium phone sales in the Middle East and Europe
Huawei Technologies says it will raise smartphone prices again. The company blames rising memory chip costs for the decision.
Huawei plans to join rivals in raising smartphone prices to counter rising memory costs, betting on a chips-to-software edge to protect its lead while it explores markets abroad https://t.co/gh3nLdfMjt
— Bloomberg (@business) October 1, 2026
Richard Yu, Huawei’s consumer business chief, shared the update this week. He spoke to reporters in Shenzhen, where Huawei is based.
Yu said the average cost of making a Huawei smartphone has already gone up by $200. He did not say over what time period this increase happened.
“We’ll have to raise prices going forward, though it will be moderate,” Yu said. He added that the rising costs are hurting profits.
How the Memory Crunch Is Reshaping the Market
Memory chips store data on devices like smartphones. Prices for these chips have climbed this year.
This has made phones more expensive to build across the industry. Apple and Xiaomi have already raised their prices because of the same issue.
Yu believes the price increases will actually help Huawei. He said cheaper phone brands will struggle more than Huawei.
Market research firm Counterpoint Research expects about 230 million smartphones priced under $200 to vanish from the market by the end of this decade.
“Demand for low-end products will be further compressed, forcing everyone to move to the mid- and high-end segment, which is what Huawei excels at,” Yu said.
Consumer demand in China has stayed weak this year. Counterpoint reported that weekly smartphone sales in China have dropped by double digits compared to last year, a trend that started in July.
Huawei’s finances have also felt the pressure. The company’s net income dropped 36% in the first half of this year.
Part of that drop came from Huawei buying up raw materials early. The company did this to protect itself from future cost increases.
Telecom equipment and consumer electronics each make up about 40% of Huawei’s total sales. These two areas are central to the company’s business.
Foldable Phones Are Driving Huawei’s Growth
Huawei has kept its prices steady so far this year. Meanwhile, rivals Xiaomi and Oppo have raised prices multiple times.
Yu said this approach is helping Huawei attract new customers. The numbers back this up.
Huawei expects its smartphone shipments to grow about 8% this year. Other Chinese phone brands could see shipments drop by as much as 34% in the same period, according to Counterpoint.
Foldable phones have played a big role in this growth. Yu said Apple entering the foldable market has actually helped Huawei.
After Apple released its new foldable iPhone, Huawei’s Pura X Max saw sales jump 76%. The phone costs $1,650 and has shipped 1.4 million units so far.
Huawei also sells a tri-fold phone called the Mate XT 2. It starts at $2,980, and the company hopes to sell over a million units this year.
Huawei plans to sell more premium phones outside China. The company is targeting the Middle East and Europe for this expansion.
The company is still recovering from US sanctions that cut off access to chip and software suppliers like Google. Those sanctions pushed Huawei to build its own operating system, called HarmonyOS.
HarmonyOS has run on Huawei phones in China since 2021. The company expects 100 million users by the end of this year.
Huawei now plans to bring HarmonyOS to phones sold outside China in the coming years, replacing Android on those devices.
Stop guessing and start investing with confidence. KnockoutStocks gives you the AI insights, market intelligence, and stock research you need to spot opportunities, cut through the noise, and make smarter investment decisions — all in one powerful platform.
Sign up today and get 50% OFF full access to our premium stock picks.
Simply use coupon code SPECIAL50 at checkout to claim your exclusive discount.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
