Core Viewpoint - The article discusses the rising prices of domestic flagship smartphones in China, indicating that the era of affordable flagship models priced around 2,000 to 3,000 yuan is over, with most brands now setting base models at around 4,000 yuan or higher [2][12]. Price Trends - The price increase for domestic flagship smartphones ranges from 100 to 500 yuan for base models and 300 to 1,000 yuan for top configurations [2]. - Specific price comparisons show that the starting price for the Xiaomi 15 series is 4,499 yuan, up 500 yuan from the previous model, while the OPPO Find X8 series starts at 4,199 yuan, an increase of 200 yuan [9][11]. Factors Driving Price Increases - The price hikes are attributed to rising costs of upstream components such as chips and storage, increased supply chain costs, and ongoing investments in research and development [2][15]. - AI technology is becoming a significant factor in driving hardware value and consumer willingness to pay, with companies investing heavily in AI development [19][20]. Market Dynamics - The global smartphone replacement cycle is extending, with Chinese users expected to replace their devices every 40 months, which may influence the demand for new smartphones [6]. - Despite the price increases, consumer sentiment is shifting, with a significant portion of users unwilling to accept higher prices, as evidenced by a reported 8% decline in flagship phone sales on platforms like JD.com [13]. Strategic Shifts in the Industry - Domestic brands are transitioning from a focus on hardware specifications to an emphasis on AI and ecosystem integration, with companies like Honor and Xiaomi leading this charge [4][5]. - The competition is intensifying as brands seek to establish themselves in the high-end market, with Honor's AI strategy and Xiaomi's ecosystem approach being notable examples [21][23]. Conclusion - The current price increases in domestic flagship smartphones reflect a combination of rising costs, technological advancements, and strategic shifts towards high-end markets, with AI playing a pivotal role in shaping future consumer experiences and brand positioning [15][20][23].