Have you noticed? If you want to change your smartphone recently, the model you like costs hundreds of CNY more than last month; if you are preparing to build a PC, the total price for the same configuration list has increased significantly; if you go to a 4S dealership to check out cars, the salesperson says chip costs have risen and discounts have narrowed.
Smartphones, PCs, and cars—three seemingly unrelated industries—are being pushed to raise prices by the same force. This force comes from AI (Artificial Intelligence).
01. Your Smartphone Is Paying a Tax for AI
Memory chips are one of the core components of smartphones, responsible for storing the system and all your data. In the past, their share in the bill of materials (BOM) cost of a smartphone was about 10% to 15%. However, by 2026, this figure has surged to 30% to 40%. The reason for this phenomenon is that the High Bandwidth Memory (HBM) required by AI servers yields much higher profits than the standard memory used in smartphones.
Memory giants such as Samsung, SK Hynix, and Micron have shifted a massive amount of capacity to the AI sector. With less capacity left for smartphones, prices naturally go up.
As a result, on September 1, 2026, brands such as Huawei, Xiaomi, and Honor simultaneously raised the prices of multiple models, with increases ranging from CNY 200 to CNY 1,000.
Some brands have adjusted the prices of their older models twice within a month, and the price of certain mid-to-low-end products has surged by up to 40% compared to their initial launch prices.
02. PC Building Welcomes the Most Expensive Back-to-School Season
In the second quarter of 2026, the contract price of commodity memory increased by over 58% quarter-on-quarter, and the price of solid-state drives (SSDs) surged by more than 70%, setting the highest single-quarter record in nearly 15 years.
For a mainstream gaming PC or design workstation, the building cost has increased by CNY 1,000 to CNY 2,000, or even CNY 3,000 to CNY 5,000 compared to the same period last year. The selection space for entry-level laptops priced under CNY 5,000 has significantly narrowed.
Some PC builders noted that the current price of a certain 1TB SSD has risen to over CNY 1,000, leading many consumers planning to build PCs to adopt a wait-and-see approach. Acer has already warned that in the fourth quarter of 2026, end-user PC products will continue to see price hikes, with an average increase potentially reaching 5% to 20%.
03. Automobiles Are Also Bearing the Pressure of Chips
The demand for memory chips in automobiles is also growing rapidly. Smart cockpits, advanced driver-assistance systems (ADAS), and in-vehicle infotainment systems all require massive amounts of memory and flash memory. Meng Qingpeng, Vice President of the Supply Chain at Li Auto, issued a warning at the end of 2025 that in 2026, the automotive industry may face a memory chip supply crisis, with the fulfillment rate potentially falling below 50%.
The spot price increase for high-end automotive-grade DDR5 has even reached up to 300%. William Li, Chairman of NIO, also mentioned at a communication meeting in early 2026 that, driven by the surging demand for AI servers, automotive-grade memory is facing dual pressures of price hikes and supply shortages, with the related impacts gradually emerging starting from the second quarter of 2026.
04. When Will This Round of Price Hikes End?
The Price Monitoring Center of the National Development and Reform Commission (NDRC) pointed out in February 2026 that the continuous rise in memory chip prices and its transmission to downstream sectors are primarily driven by the increased demand for high-end memory fueled by AI computing power growth, capacity shortages, and panic hoarding by downstream companies.
The industry generally believes that memory chip prices will remain firm from 2026 to 2027. Some manufacturers predict that prices may stay at high levels until 2030, while others judge that a gradual return to equilibrium will occur in the second half of 2027. However, in the short term, expecting a significant pullback in consumer electronics prices is unrealistic.
05. What Can Ordinary People Do?
Smartphones: If it still works, there is no need to rush to replace it. The performance of your old smartphone may still be sufficient. The average replacement cycle for domestic users has already extended to 42 months, and this number is still increasing.
PCs: Buy according to your needs and do not pay for performance you will not use. Today's hardware performance is already overkill for most people. If you only use it for office work, browsing the internet, and watching videos, there is no need to chase the latest models.
Automobiles: Pay attention to the price-increase resistance of automakers. Brands with stronger supply chain management have better cost control and more stable end-user prices.
AI is changing the world, starting with changing your bills. Every extra cent you spend might be paying a tax for data centers far away.