Mei Ri Jing Ji Xin Wen·2025-11-18 06:26Core Viewpoint - The global memory chip industry has experienced a significant price surge since the second half of 2025, particularly in the fourth quarter, with DDR5 memory prices doubling within a month, impacting smartphone manufacturers' procurement strategies [1][2][3]. Group 1: Price Surge and Impact on Smartphone Manufacturers - The price of DDR5 16Gb memory chips rose from $7.68 to $15.5 in just one month, marking a 102% increase, while DDR4 16Gb saw a rise of over 92% [1]. - Major smartphone manufacturers like Xiaomi, OPPO, and vivo have paused their memory chip purchases due to high price increases, with some DRAM inventories dropping below three weeks [1][2]. - The contract prices for LP4X/5X memory chips increased by 40% and UFS prices by 25% to 30% in the fourth quarter compared to the previous quarter [2]. Group 2: Supply Chain Dynamics and AI Demand - The demand for memory chips has surged due to the AI boom, with AI servers requiring significantly more DRAM and NAND than standard servers, leading to a supply shortage [3]. - North American cloud service providers have increased their procurement needs for the upcoming year, contributing to a projected supply gap in memory chips [3][4]. Group 3: Cost Implications and Manufacturer Strategies - The DRAM contract prices increased by over 75% year-on-year in the fourth quarter, raising the overall BOM cost for smartphones by an estimated 8% to 10% [4]. - Smartphone manufacturers are responding to rising costs by slightly increasing prices and strategically reducing memory configurations in their products [5]. - The low-end smartphone market may face significant challenges, with potential production losses as manufacturers shift focus to mid-to-high-end models [7]. Group 4: Financial Performance of Companies - Transsion Holdings reported a revenue of 49.543 billion yuan for the first three quarters of 2025, a slight decline of 3.3%, with a net profit drop of 44.97% attributed to rising supply chain costs [8]. - Analysts predict that Transsion's profitability will be pressured by memory price increases and market competition, but adjustments in product pricing may help restore profitability [9].