HK Stock Market Move | The entire mobile phone industry chain has collectively declined. The pressure from memory cost will be concentrated in the second half of the year. Yu Chengdong stated that all mobile phones will face significant price increases.

The entire mobile industry chain is collectively declining. As of the time of writing, Hon Teng Precision (06088) has dropped by 5.25%, trading at HKD 5.86; Q TECH (01478) is down 3.44%, priced at HKD 7.15; COWELL (01415) has fallen by 2.17%, now at HKD 22.50; and Lens Technology (06613) decreased by 1.9%, priced at HKD 21.68. In news, on the afternoon of August 5, Yu Chengdong, Huawei's Executive Director, Chairman of the Product Investment Review Committee, and Chairman of the Terminal BG, stated at Huaweis new product launch that the high prices of memory are leading to potential large-scale price increases for all smartphones in the future, otherwise, sales at the original prices would result in losses. It is reported that this year, smartphone manufacturers have experienced several rounds of price increases, with many smartphone brands adjusting the prices of their current models and new products upwards. According to memory price tracking by the third-party research firm Counterpoint, smartphone memory prices increased by over 80% quarter-on-quarter in the second quarter of 2026. This has led to a 70% increase in the factory price of low-end phones compared to the same period last year, and a 50% increase in the factory price of mid-range and flagship phones. IDC analyst Guo Tianxiang pointed out that the low-cost inventory materials previously procured by manufacturers are gradually being depleted, and cost pressures will be concentrated in the second half of the year.