As production costs for mobile phone memory chips continue to climb upstream, unchecked rumors about impending mobile phone price increases have begun to circulate widely.

According to various media reports, leading mobile phone brands such as vivo, Xiaomi, iQOO, and Honor are planning to implement a new round of price adjustments for their products in March. It is widely anticipated that the starting prices of several upcoming new models will rise by 600-1000 yuan, with mid-to-high-end flagship models potentially seeing increases of 2000-3000 yuan. Simultaneously, prices for some older models currently on sale will also be adjusted upwards. If memory prices remain elevated, the mobile phone market could witness multiple price adjustments within a single year by 2026.

Amidst the AI frenzy, mobile phone shipments are already under strain. At this critical juncture, the price hikes triggered by rising component costs will inevitably impose additional pressures on an already struggling mobile phone industry. For many manufacturers, finding new ways to attract consumers amidst price increases has become an unavoidable challenge.

In fact, several years ago, many mobile phone manufacturers began exploring new avenues for growth. Some ventured into the automotive industry, others delved into the AI sector, and still others started exploring innovative mobile phone concepts. Despite these efforts, the current round of price hikes is still expected to impact their shipment volumes to some extent.

How should mobile phone manufacturers respond to the new round of price hikes?

I

Amidst the widespread adoption of AI across industries, one of the most straightforward strategies for mobile phone manufacturers to cope with price hikes is to leverage AI to engage users and boost shipment volumes. Indeed, several years ago, many manufacturers began formulating their AI strategies. The AI imaging, AI dialogue, and AI chips we see today, which seamlessly integrate hardware and software, are direct outcomes of mobile phone manufacturers embracing AI.

While embracing AI has opened up new growth opportunities for mobile phone manufacturers, in many cases, AI remains an additional feature rather than a core component of mobile phones. In other words, AI has not yet brought about significant transformations to mobile phones. With the arrival of a new round of price hikes, especially when mobile phone shipments face new challenges, considering how to leverage AI to drive substantial changes in mobile phones has become a crucial topic for every manufacturer to ponder.

We all know that a few days ago, Honor's new AI mobile phone, unveiled at the WMC, garnered significant attention. The changes Honor has made to mobile phones through AI have indeed opened up new avenues for manufacturers. This new approach involves not just incorporating AI into mobile phones but enabling mobile phones to undergo fundamental transformations through AI.

Therefore, when a new round of mobile phone price hikes arrives, how manufacturers can drive fundamental and disruptive changes in mobile phones through AI has become an important consideration. Only when AI can truly bring about essential and radical changes to mobile phones and transform them in a meaningful way will its maximum functionality and role for mobile phones be fully realized.

II

Besides leveraging AI to explore new paths for mobile phones, we also need to look for new sectors and directions emerging from the mobile phone industry. We can draw some insights from Apple's development strategy. We know that when more and more players began venturing into automotive manufacturing, Apple exercised significant restraint. In fact, it was not due to a lack of funds but rather a strategic decision. If we were to summarize this restraint, it would be that Apple aims to find the 'next mobile phone' starting from its current mobile phone business.

So, what exactly is the 'next mobile phone' for Apple? Now, we can clearly see that it is Apple's MR device, the Apple Vision Pro. Apple's path has actually shown mobile phone manufacturers a new direction. That is, when mobile phone shipments are under pressure, manufacturers should not blindly rush into the hottest sectors but should find new development directions based on their own characteristics and advantages.

For Apple, finding the gateway to the mobile internet era—mobile phones—was key to its current success. With the advent of the AI and AR eras, finding the gateway to the new era—the next mobile phone—is crucial for ensuring its continued development.

For many mobile phone manufacturers, finding the next generation of mobile phones and thereby continuing their success in the mobile phone sector is the key to ensuring their long-term development.

III

Nowadays, overseas expansion is a hot topic. Whether in the internet industry or the new tea beverage sector, overseas expansion is almost the key direction for players seeking new growth opportunities. When mobile phone price hikes arrive and shipment volumes face pressure, how manufacturers can find more new development opportunities through overseas expansion is also a viable option.

Many domestic mobile phone manufacturers have already demonstrated remarkable performance in overseas markets. Take vivo, for example; it has captured the largest market share in Indonesia, the second-largest in Malaysia, and has over 150 million users in India.

OPPO is no exception. Unlike vivo, which has a strong presence in the Southeast Asian market, OPPO has set its sights on the European market. For instance, the OPPO Find series is relatively popular in Spain, with the sales of the Find X9 Pro being five times that of its predecessor. In the Latin American market, OPPO's mobile phone growth is also robust. In Mexico, the sales of the OPPO Find X9 Pro are 3.5 times that of its predecessor.

Through the performances of vivo and OPPO, we can see that when shipment volumes are under pressure and the domestic market is highly competitive, finding new paths and opening up new growth points through overseas expansion is also a good choice.

Final Thoughts

Against the backdrop of rising raw material costs, mobile phone manufacturers are facing a new round of price hikes. With shipment volumes under pressure, finding new paths has become an inevitable topic for every manufacturer. As the saying goes, crises harbor opportunities. How manufacturers can seize this new moment of change and find new development models suitable for themselves is the key to truly navigating through cycles and ushering in new growth.