An unprecedented uproar in the mobile phone industry in October 2024!

Following vivo, OPPO, Xiaomi, iQOO, and OnePlus, Honor has finally confirmed that it will launch its new flagship Magic7 series in October. According to the official schedule, Honor will first hold the MagicOS 9.0 conference and developer conference on October 23-24. This OS version focuses on the "L5 Fully Automated" AI OS, promising a wealth of exciting features. Lei Technology has been invited to cover the event live. On October 30, Honor will officially unveil its new flagship Magic7 series for the year.

Image credit: Weibo

New chips, new phones.

With the launch of the Dimensity 9400, the vivo X200 series debuted yesterday (October 14), and Lei Technology promptly published its initial hands-on review. However, this is just the beginning. OPPO will release two models in the Find X8 series (Find X8 and Find X8 Pro) next week, also equipped with the Dimensity 9400, competing directly with vivo on the same platform. (PS: Lei Technology has been invited to cover the event live.)

On October 22, Qualcomm's Snapdragon Summit will be held in Hawaii, USA, and Lei Technology has been invited to cover it live. Qualcomm will unveil its new flagship chip, the Snapdragon 8 Elite, at the summit. According to Digital Chat Station, four companies are expected to announce Snapdragon 8 Elite flagships in the last week of October. Honor and iQOO have confirmed their participation, while Xiaomi and OnePlus have yet to announce specific dates but are likely to be among the other two.

Apart from these, the last two months of 2024 will mainly see the Redmi K80 series, realme GT7 Pro, and the highly anticipated Huawei Mate70 series.

October is crucial. Not only are the launches happening earlier and more frequently than previous years, but this wave of October flagships also reflects some collective changes that may signal shifts in the mobile phone market for the coming year. In essence, this sets the tone for the mobile phone industry in 2025!

Is a collective price hike for flagship phones inevitable?

Rumors of flagship phone price hikes have been circulating for some time.

Upon the launch of the vivo X200 series, the starting price of the vivo X200 (12GB+256GB) at RMB 4,299 garnered significant attention and discussion. This attracted not only media and netizens but also Xiaomi's Wang Teng, who mentioned it on Weibo.

Image credit: Weibo

For comparison, the starting price of the previous-generation vivo X100 (12GB+256GB) was RMB 3,999. However, this trend extends beyond just vivo. The starting prices of the OPPO Find X7 (12GB+256GB) and Xiaomi 14 (8GB+256GB) were also RMB 3,999.

Similarly, the vivo X200 series is not alone in facing a price hike. This generation of Android flagships will inevitably see a collective price increase. Wang Teng later mentioned two primary reasons for the price hikes in flagship phones this year: firstly, the adoption of TSMC's latest N3E process for the Dimensity 9400 and Snapdragon 8 Elite has significantly increased costs; secondly, memory prices have risen throughout the year and are now at high levels.

The situation indeed reflects these factors. The N3E process is reported to have increased costs by approximately 20%, leading to a notable increase in the price of the new flagship chips.

Renowned analyst Ming-Chi Kuo also revealed that the procurement cost of the Snapdragon 8 Elite chip has increased by 15% from the previous generation, reaching USD 180 (approximately RMB 1,280). Similarly, the procurement cost of the Dimensity 9400 has risen to USD 155 (approximately RMB 1,103).

vivo X200 pricing, Image credit: Lei Technology

The rise in memory costs affects more than just flagship phones. During this supercycle, industry estimates suggest that memory prices may peak next year, meaning that we are unlikely to enjoy the low prices of last year's "cheap and abundant" memory for a long time to come.

Moreover, core components such as screens and batteries are also facing varying degrees of price increases. Mid-range models will also face cost pressures, leading to higher final pricing or trade-offs in product features.

Unlocking the New World of AI: AI OS as the Only Key

In recent years, as the tide of generative AI technology has risen, phone manufacturers have placed even greater emphasis on their operating systems. Consequently, the scale and AI integration of system launches have also increased significantly.

At the 2024 vivo Developer Conference held last week (October 10), vivo unveiled OriginOS 5, BlueLM (a large language model), and Blue River OS 2. Whether it's Android-based OriginOS 5 or vivo's self-developed Blue River OS 2, AI remains a core focus.

Beyond the upgrades to the system AI assistant powered by BlueLM, the introduction of BlueAI Intelligence is particularly noteworthy.

Image credit: Lei Technology

While vivo cannot fully integrate AI into the system's core like Apple, it has begun experimenting with embedding large model capabilities deeper into the system. By launching vivo's Intelligent Agent, vivo aims to transform AI from a "co-pilot" to the "main driver," enabling a range of tasks like restaurant reservations without user intervention.

Similar approaches are not uncommon, with Huawei and Honor already implementing them. It is expected that OPPO and Xiaomi will follow suit.

Like Huawei's HarmonyOS, vivo's self-developed Blue River OS 2 is also preparing to establish AI as the foundation and operating logic of a cross-device operating system.

OPPO will soon hold its ColorOS 15 conference and 2024 ODC Developer Conference on October 17, with AI prominently featured in its messaging, proclaiming the slogan "AI, One Step Closer." Subsequently, Honor will unveil MagicOS 9.0 on October 23, with the tagline "Witness the Magic of AI."

Image credit: Honor

Undoubtedly, AI is the dominant theme in today's mobile phone systems.

Learn from Apple, Become Apple, Surpass Apple

Apple's lack of innovation has been a common refrain in recent years, but we cannot deny its market influence.

Take flat screens as an example. Android manufacturers collectively went through a long phase of "curved screen time" with their flagship phones. While Samsung and Xiaomi's shifts began reversing this trend, it cannot be denied that the iPhone has fully validated the market appeal of flat screens compared to curved ones, not to mention the negative aspects of curved screens.

To this day, the design paradigm established by the iPhone 12 series has become the dominant trend in mobile phone design.

iPhone 12, Image credit: Apple

However, it's not just flat screens. Domestic manufacturers are relearning and attempting to surpass Apple in other areas, with Dynamic Island being a prime example.

In the already released vivo X200, we can see that the original Atomic Notification design has transformed into "Atomic Island." Coupled with OPPO's "Fluid Cloud" and Honor's "Smart Capsule," the Dynamic Island design has once again become an object of emulation and learning.

While these designs cannot match iOS in terms of app compatibility, domestic manufacturers have expanded their functionality and usage scenarios based on the Dynamic Island concept, allowing users to drag and drop images into any app, for instance.

Atomic Island, Image credit: Lei Technology

However, in terms of offline communication, vivo has surpassed Apple by partnering with MediaTek to achieve offline communication over 1500 meters on the vivo X200 series, while also supporting multi-device handover to further expand the range of offline communication.

Apple had actually developed a similar feature, with The Information reporting that the team responsible for the project numbered nearly 1,000 people in 2019, demonstrating its importance. However, the project was eventually abandoned, evolving into the "Find My" network supporting Apple devices like AirTags.

A Fiercely Competitive Mobile Phone Market, Complex Consumer Sentiments

The "flagship battle" in October intensifies, with almost all major phone manufacturers focusing their efforts on launching new models. However, facing this wave of price hikes, consumers may have mixed feelings.

On the one hand, the performance improvements brought about by technological advancements are indeed attractive, and the N3E process continues to enhance flagship phones' energy efficiency and performance. On the other hand, faced with rising prices, many people can't help but wonder: Do the increased prices truly justify the added value?

vivo X200, Image credit: Lei Technology

As more flagship phones are released, perhaps a clearer answer to this question will emerge.

Despite the price hikes, consumer enthusiasm for flagship phones may not wane, provided the product experience is sufficiently compelling. Lei Technology, focusing on AI hard technology, will conduct objective, professional, and systematic evaluations of all flagship phones set to be released in October and share our insights with you promptly.

Over the past two years, consumer demand for high-end flagship phones has steadily increased, with the market share of flagship phones continuing to expand. This indicates that consumers' desire for cutting-edge technology and ultimate experiences remains strong. Meanwhile, AI is gradually changing the mobile phone experience. As the public becomes more familiar with and adept at using AI tools, AI is destined to be a crucial point of competition in the mobile phone market in the coming years.

Ultimately, phone manufacturers compete not only on technology but also on pricing power. Increasingly expensive flagship phones are making consumers reassess their purchasing decisions. The industry landscape and rules of the game in the mobile phone market are quietly evolving.

Source: Lei Technology