Chinese smartphone manufacturers OnePlus and Oppo have announced plans to raise prices on select models in response to escalating memory costs.

The decision, set to take effect next week, follows a thorough evaluation of the increasing expenses associated with key components used in the production of their mobile devices. Oppo's notice posted on its China online store indicated that the price adjustments are expected to be implemented around March 16, affecting certain lower-priced smartphones and specific OnePlus models. Notably, premium devices like those from the Find and Reno series are currently exempt from the price hikes, with the impact confined to the Chinese market.

The impending price adjustments underscore the mounting strain felt throughout the smartphone supply chain as component costs continue to surge.

Industry analysts attribute the price hikes to the escalating demand for memory and storage chips utilized in smartphones, a trend that has been gaining momentum in recent months across the technology sector. A significant portion of this heightened chip demand stems from the rapid expansion of AI data centers, which heavily rely on substantial amounts of high-performance memory modules.

The challenges related to rising component costs are not unique to Oppo and OnePlus alone. Smartphone brands industry-wide are grappling with similar cost escalations driven by the heightened demand for memory chips. As manufacturers increasingly prioritize the production of higher-margin memory modules for AI server applications, the supply for consumer electronics, including smartphones and laptops, may face constraints. Should component costs continue on an upward trajectory, manufacturers could be compelled to make tough decisions later in the year, such as raising retail prices or revising device specifications to counterbalance the elevated manufacturing expenses.

Requests for comments from OnePlus and Oppo regarding the impending price adjustments remained unanswered at the time of reporting.