Yu Chengdong responds to memory price increase pressure.

On October 6, Huawei's overseas X account published a summary of the September 29 international media roundtable. Yu Chengdong, Huawei's Executive Director, Director of the Product Investment Review Committee, and Chairman of the Terminal BG, exchanged views with reporters from multiple international media outlets on Huawei's consumer business and the HarmonyOS ecosystem. When discussing the topic of rising memory costs, Yu Chengdong candidly said that the sharp increase in memory component prices has added more than $200 in cost per phone. Because Huawei's phones have higher memory configurations than other phones, the cost increase is also greater. "Overall, this is undoubtedly a huge challenge facing the entire industry. We see many phone manufacturers raising prices. We are raising prices at a very slow pace because we are trying to bear the costs ourselves, so that consumers do not have to bear these costs. But to be honest, our overall profit margin is declining sharply. Looking ahead, we will also have to raise prices. If we suffer losses, our business will not be sustainable, and the company must first be able to survive." Yu Chengdong also mentioned that after smartphone prices rise, the low-end market will come under even more pressure, which will push manufacturers to move toward the mid-range and high-end markets. "The high-end market is an area where Huawei excels. We are confident that we will continue to compete in this round of smartphone price increases and will continue to provide consumers with better innovative products, experiences, and services." Yu Chengdong also said that in markets such as Europe, phones are mainly sold through telecom companies. If Huawei wants to sell more phones in some developed countries, it must return to telecom resale channels. This is a possibility Huawei is considering.