Memory Enters Supercycle
Surging AI infrastructure demand has driven memory prices sharply higher, with pressure spilling over into the consumer electronics market. A TrendForce survey shows memory prices have entered a supercycle since the second half of 2025, hitting handset costs especially hard. In the bill-of-materials cost of the past two generations of 256GB iPhone Pro models, memory's share rose from about 10% a year ago to about 34% in the third quarter of 2026, and is expected to exceed 40% in the first half of 2027.
Brands Launch Wave of Price Hikes
In response to soaring memory prices, the handset market has seen one round of price hikes after another this year. Apple launched the iPhone 18 Pro and Pro Max priced more than NT$5,000 above the previous generation, with new and older models rising in tandem, including a one-time NT$11,000 increase for the 1TB iPhone Air version. Samsung A-series phones were earlier raised by about NT$500 to NT$3,000, while tablet products have gone through two price adjustments, and the Samsung official website further adjusted prices of several older models from October, including the 16GB, 1TB Galaxy S26 Ultra raised from NT$59,900 to NT$67,900, a single increase of NT$8,000. The OPPO Find X10 Pro Max with 16GB memory and 512GB storage is priced at NT$58,990, and the vivo X500 Pro Max starts at NT$55,990, both firmly in the high end of the flagship price band.
陳啓蒙, General Manager of the Mobile Communications Business at Samsung Electronics Taiwan, said the root cause of the price hikes is memory demand driven by huge AI needs, with AI demand only set to grow, and memory demand expected to remain very strong through the end of next year. 陳怡婷, General Manager of vivo Taiwan, observed that handset price bands have moved全面 upward over the past two years, with the low-end segment previously concentrated below NT$5,000 now below the NT$10,000 mark, high-end flagships routinely reaching NT$40,000 to NT$50,000, and phones priced below NT$6,000 almost disappearing from the market.
Uptrend May Last Until 2028
On when the price increases may ease, industry players remain cautious. 陳怡婷 admitted the uptrend is expected to last at least until the first quarter of next year, with handset brands still facing headaches in the first half. 陳啓蒙 also believes the communications market will face many challenges next year. 劉金, General Manager of OPPO Taiwan, noted that research firms forecast price-hike pressure will persist next year and could even extend to 2028.
Facing cost pressure, brands have rolled out promotional purchase plans. Industry observers say this implies cuts in marketing spending and narrower profit margins, which is not a long-term solution. 陳啓蒙 said brands must make product segmentation more refined, stimulate demand through products, software strengths and ecosystems, and leverage AI applications to drive sales. 陳怡婷 said vivo is focusing resources on the mid-to-high-end market, reducing investment in the sub-NT$10,000 Y series, while this year's high-end X series sales in Taiwan grew about 20% year on year, with full-year shipments expected to be flat or down slightly, and from October 1 some older models' suggested prices were adjusted on a sell-through, no-replenishment basis. 劉金 said there are currently no price-hike plans for models on sale, and prices and supply will be kept stable through cost controls.