Mobile phones in China are suffering the biggest price increase in five years. The culprit is not a manufacturer: it is AI

Smartphones face a year of challenges due to the price of basic components such as RAM. The predictions They are already talking about increases of between 90 and 150 dollars for basic mobile phones, and between 300 and 400 dollars in the case of high-end mobile phones. AI is about to blow up an industry that has claimed its first victim: Meizu.

Go for it, leave almost everything. I still remember that MWC last year when I stopped by the Meizu stand. I liked what I saw: new batch mobiles, with balanced hardware, the design and ROM that I fell in love with almost a decade ago and a shocking promise: the manufacturer was preparing its global launch.

A history of mobile manufacturing in China, about to return to Europe as an alternative to manufacturers such as Xiaomi, Honor or OPPO.

what has happened. Recently, Meizu has announced its exit from the smartphone market to focus their efforts on AI. In addition to the strong competition in its local market, the sharp rise in RAM prices makes it difficult for the manufacturer to be competitive against more established brands.

It is a movement similar to that of ASUS, which He has said goodbye to his Zenfone family to focus on AI solutions and other types of products.

The death of the quality-price mobile phone? 2026 will be a critical year for quality-price mobile phones. For years, manufacturers have been able to play with relatively comfortable margins:

  • RAM abundance
  • Component recycling
  • A supply chain at your entire disposal

The RAM giants have their shelves collapsed due to requests related to AI, and cheap modules have completely stopped being a priority.

The dilemma. IDC analysts make it clear that we are witnessing a major shock in the supply chain. It’s not a temporary high: AI has completely changed market priorities, and things like RAM won’t stabilize in price anytime soon.

Historically, we have normalized annual cycles and launches “just because”, even though there was no hardware or news to justify the launch of clone phones year after year. Maybe and just maybe, the price crisis will make manufacturers have to rethink their strategy.

Image | Meizu

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