Honor Faces Unyielding Cost Crisis Amidst New Flagship Launches

Top manager of Honor’s Chinese division, Lin Lin, made an alarming statement regarding the electronics market situation. According to him, the industry has entered an “extremely unfavorable” phase of rising product costs, and this trend will persist for at least a year, possibly two. Honor 500 Pro. Photo: Honor The Honor representative strongly advised users planning to upgrade their smartphones not to delay purchasing. The situation is paradoxical: it’s not about whether future novelties will become cheaper, but about the fact that even already released devices may begin to cost more than their starting price.

Lin Lin also noted that the price increase will inevitably affect the used equipment market. A sharp jump in the cost of components, primarily memory, caused the crisis. Honor’s chief manager for tablets and IoT devices had previously described this growth as “unbearable” and urged consumers to buy tablets immediately, as price tag reviews have already begun.

TrendForce analysts confirm Honor management’s concerns: it is expected that in the first quarter of 2026, memory prices will soar, forcing smartphone and laptop manufacturers to either raise prices or reduce memory volumes. Lin Lin stressed that the coming year will be decisive for the survival of many companies. Under severe pressure, some manufacturers may begin selling off excess stock at a loss to generate turnover funds; however, the overall market trend is directed towards rigorous resource consolidation around several leading brands and a global rise in technology costs.

Let’s recall, today it became known that Honor is preparing another three models of the flagship Magic 8 series – Magic 8 RSR Porsche Design, Magic 8S, and Magic 8 Air.