When the topic of domestic mobile phones arises, it's common knowledge that they have claimed a 60% share of the global market. Among the top 10 brands, eight are domestic, with only Apple and Samsung standing as exceptions.

Indeed, on the global stage, apart from Apple and Samsung, it's predominantly a world dominated by domestic mobile phone brands.

What makes domestic mobile phones so formidable? Essentially, they have relied on a single strategy: leveraging low-priced models to drive volume sales.

Take Transsion, a domestic mobile phone manufacturer, as an example. It once broke into the global top five, with an average selling price of just over 300 RMB. Xiaomi, another domestic giant, has consistently ranked among the top three globally, with an average price hovering around 1,000 RMB.

OPPO and VIVO, too, have average prices in the vicinity of 2,000 RMB.

To prevent these low-priced models from tarnishing the image of their main brands, domestic manufacturers have even introduced secondary brands like realme, IQOO, and Redmi, specifically targeting the budget-conscious market segment to capture additional market share.

Without exaggeration or bias, it's fair to say that these low-priced models have been instrumental in driving volume sales, enabling domestic mobile phones to secure a 60% market share. Meanwhile, the high-end mobile phone market is primarily dominated by two major players: Samsung and Apple.

However, by 2026, the era of domestic mobile phones relying solely on low-priced volume sales may indeed come to an end.

This shift is attributed to a significant restructuring of the overall cost structure of mobile phones.

Since the second half of 2025, memory chip prices have soared, increasing by an average of four to five times. Memory chips have now become the most expensive component in mobile phones, surpassing even the SoC (System on a Chip).

For instance, in low-end mobile phones, a model that originally sold for 1,000 RMB had a memory chip cost of 150 RMB. Now, that cost has surged to 600 RMB. To maintain profitability, a phone that once sold for 1,000 RMB would now need to be priced at around 1,500 RMB, representing a 50% price hike.

How can brands sell at these inflated prices? As a result, brands like Xiaomi are phasing out some low-end models due to unsustainable costs. Additionally, they are reducing the shipment volumes of low-end mobile phones, leading to a shift in the overall mobile phone market structure, with fewer low-end options available.

Previous data from Counterpoint indicated that in recent years, mobile phones priced below 200 USD are expected to experience a sharp decline of 40%, resulting in a reduction of over 200 million units in sales. This segment was predominantly occupied by domestic mobile phones.

Therefore, it's not surprising that in the coming years, there will be a dwindling number of low-end models. Under these circumstances, domestic mobile phones that once relied on low-end volume sales will find it challenging to sustain their sales volumes, and the low-price strategy will no longer be sustainable.

This explains why in the first three quarters of 2026, whether it's Xiaomi, OPPO, or VIVO, all have seen a continuous decline in sales. Looking ahead, the focus will shift towards supply chain management capabilities and the ability to build high-end brands. The era of relying on low-priced volume sales may not make a comeback in the near future.