Mobile Phone Manufacturers Announce Price Increases in Succession, Individual Models No Longer Eligible for National Subsidies After Price Hike

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(Source: Elephant News)

Recently, smartphone manufacturers have announced price hikes one after another. OPPO announced that starting from 0:00 on March 16, it will adjust the prices of some of its products. Vivo also declared that from 10:00 on March 18, it will adjust the prices of certain models, including Vivo and its sub-brand iQOO. On March 18, reporters visited multiple offline retail outlets in Jinan to learn about the current pricing status of these brands’ phones.

Price increases vary, mainly related to inventory levels and phone models

During visits, reporters found that the price hikes for OPPO and Vivo phones are mainly related to inventory status and specific models.

At several Vivo offline stores in Jinan, reporters observed that some flagship series, such as the X300Pro, have not yet increased in price. Several sales staff told reporters that the main reason is that these models are still selling existing stock. However, inventory is tight, and some models are already sold out. Once current stock is depleted and new batches arrive, these models will face price pressure.

At a certain online shopping platform’s physical store in Jinan, sales staff told reporters that OPPO’s Find series and Reno series have not yet increased in price, but are under pressure to do so. “The order of price increases mainly relates to profit margins. Currently, mid- and low-end models, as well as high-cost-performance brands like iQOO and OnePlus, are seeing price hikes. These models have smaller profit margins, and with rising procurement costs, not raising prices risks losses.”

“Some flagship models from OPPO and Vivo, as well as other brands, have not yet increased in price because they have higher profit margins. Short-term price stability helps protect their profit space.”

Notably, some sales staff also mentioned that when new batches of certain models arrive, the hardware may be slightly downgraded even if the prices remain the same as previous batches.

Dealers and consumers caught off guard, some models that previously qualified for national subsidies no longer receive discounts

During interviews, reporters sensed the frustration among sales staff from Vivo and OPPO. On one hand, this round of price hikes caught them somewhat unprepared; on the other hand, higher prices squeeze profit margins, especially for mid- and low-end models, reducing their cost-performance advantage. To avoid losses, they have to follow manufacturers’ pricing adjustments.

Additionally, some sales staff reported that the price increases mean certain models that previously qualified for government subsidy policies no longer benefit from discounts. For example, a flagship with 16+512GB configuration originally priced at 5,999 yuan, after a 400-yuan increase, exceeds the 6,000-yuan threshold for national subsidies. Consumers buying this phone now face not only a 400-yuan price increase but also lose the 500-yuan subsidy, totaling an extra 900 yuan compared to before.

The price hikes have also disrupted some consumers’ plans to buy new phones. During online and offline interviews, some consumers who intended to purchase mid- or low-end models or phones near the 6,000-yuan subsidy threshold are adjusting their plans. Some are rushing to buy their target models to take advantage of subsidies, while others are delaying their upgrade, saying, “Many models have increased in price. My phone is two years old, the battery isn’t great, but it still works fine for browsing, calls, and photos. I’ll hold off on changing it for now.”

Storage chip prices continue to rise and are passing downstream, potentially leading to more brand price increases

At the end of February, the National Development and Reform Commission’s Price Monitoring Center issued a report titled “Storage Chip Prices Continue to Rise and Are Transmitting Downstream.” It states that since September 2025, driven by explosive demand and a “cliff-like” shortage of capacity, the global memory market has widened its gap, with storage chip prices continuously rising. The report notes that storage chips are currently in an upward cycle: “Looking at the year, driven by the sustained growth in AI server computing power, the global storage chip market will continue to be in short supply, and prices will keep rising.”

The report also mentions that “the increase in storage chip prices is gradually transmitting to consumer electronic products,” which explains why some models from Vivo and OPPO are seeing price increases—not merely adjustments in dealer pricing strategies, but a reflection of upstream raw material and component cost changes in the industry chain. The rising costs of components, especially storage chips, produced by upstream manufacturers, are passed on to phone manufacturers, affecting the overall price of phones, which in turn influences retail prices set by dealers.

Price pressures from upstream are not limited to a few brands but will spread across the entire industry chain, continuing to impact downstream pricing trends. As a frontline sales person put it, “Although some brands’ phones haven’t yet increased in price, the rising costs of upstream storage components are creating overall pressure in the industry. With storage prices fluctuating, there’s a possibility that some brands will implement another round of price adjustments.”