[News] Chinese Smartphone Maker Transsion Warns 2025 Net Profit Could Plunge 50%+ on Soaring Memory Costs

Memory prices are soaring, and smartphone makers are starting to feel the pinch. After Xiaomi reportedly cut its 2026 shipment forecast, IT Home, citing a company announcement, reports that another Chinese brand, Transsion, expects its 2025 net profit to tumble over 50% YoY amid rising memory costs.

According to IT Home, Transsion’s preliminary 2025 results show revenue of roughly CNY 65.57 billion, down about 4.6% YoY. Net profit is projected at around CNY 2.55 billion, a 54% drop from 2024, while core net profit, excluding non-recurring items, is expected at CNY 1.90 billion, down 58% YoY, as rising memory and storage costs squeeze margins.

Transsion, according to the report, blamed higher component prices and supply chain pressures for rising product costs that squeezed gross margins. The company also increased sales and R&D spending to stay competitive, which further weighed on net profit despite only a modest revenue decline.

According to the South China Morning Post, Shenzhen-based budget smartphone maker Transsion has already slashed its 2026 shipment target by 30–45 million units, down from an initial forecast of around 115 million. Jiemian News added that other Chinese brands are following suit: Xiaomi and OPPO have cut 2026 forecasts by over 20%, while vivo trimmed projections by nearly 15%.

However, not all smartphone makers are retrenching amid rising cost pressures. Jiemian note that Huawei has been better shielded from rising memory costs, leveraging localized supply chains tied to China’s leading memory vendors to preserve some profit margin. The report pointed out that the company is internally weighing price cuts for its Pura, Nova, and Enjoy series to further expand market share.

Read more

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(Photo credit: Transsion)