Oil prices rise, memory prices soar: Home appliance industry begins price hike in April, with increases up to 20%

Ask AI · How do the Middle East war and AI boom jointly drive up home appliance costs?

The Middle East war pushes up oil prices, combined with the expansion of AI data centers leading to rising storage chip prices, gradually transmitting to the home appliance industry.

A reporter from Yicai learned that starting April 1, some home appliance companies have raised the supply prices of certain models of TVs, air conditioners, refrigerators, washing machines, etc., with increases ranging from 2% to 10%, and large kitchen appliances like range hoods and stoves even seeing increases of about 10%-20%.

Since retailers are still selling existing inventory, the “perceived” price increase at the retail end is not yet obvious, but it is expected to gradually become apparent this month. Some companies and retailers worry that price hikes will add more pressure to a market with sluggish growth, and analysts expect market and industry segmentation.

Manufacturers: Rising costs of oil, memory, and others lead to price increases

A person involved with Skyworth’s white goods business told Yicai that starting April 1, Skyworth increased the supply prices to retailers for refrigerators, washing machines, and air conditioners by about 10%. The main reason is that in the first quarter, prices of non-ferrous metals like copper and aluminum rose, followed by the significant increase in oil and raw material prices due to the Middle East conflict. These costs are transmitted, approaching about 10% of home appliance costs, prompting companies to raise prices accordingly by about 10%.

According to the data provided by the above person, compared to the average prices in 2025, at the end of March 2026, copper was priced at 95,195 yuan/ton, up 18.6%; electrolytic aluminum at 24,530 yuan/ton, up 18.85%; black material M20S at 19,200 yuan/ton, up 20.77%; ABS plastic at 15,500 yuan/ton, up 51.7%; and copolymer PP at 9,450 yuan/ton, up 26.47%.

On the export side, besides material costs increasing, the appreciation of the RMB this year has also increased pressure on exports of white goods, which are likely to see price hikes. The relevant Skyworth source believes that in Q4 last year, competition in the home appliance industry intensified, and industry profits declined. Now, companies are becoming more rational.

A person from Hisense’s South China region told the reporter that from February to March, prices of TVs have been gradually rising, with different series increasing by 3%-10% based on cost calculations. The main reason is that, influenced by AI development, memory chips and storage prices in the TV industry have surged sharply—DDR prices have increased tenfold from January 2025 to mid-March this year, NAND prices doubled from December 2025 to January 2026, and NAND prices are expected to continue rising in Q2; meanwhile, the Middle East conflict has pushed up raw material prices like petrochemicals, and transportation costs are also rising. “In the future, structural adjustments are inevitable, focusing on high-end and innovative products.”

“Prices of TVs, refrigerators, washing machines, and air conditioners have all increased, roughly by 2%-10%. The market will likely go through a gradual adaptation process, and retail prices may face some pressure at the beginning of the month,” a TCL South China source told the reporter. Retailers’ purchase prices have already increased, and retail terminal prices are expected to gradually rise as well. “But not all models; lower-end promotional models have seen more obvious price hikes, while some mid-to-high-end models haven’t increased as much.”

In this round of home appliance price hikes, different companies, products, and models vary. The Skyworth source said that, in terms of costs, refrigerators have increased by 8%-10%, washing machines by 6%-8%, and air conditioners by 5%-6%. The higher cost of refrigerators is mainly due to the extensive use of chemical materials, including inner liners, drawers, and end caps. Unless profits were particularly high before, companies with lower profit margins need to raise prices appropriately to cover increased costs and ensure normal operations. Not all costs are fully passed on; products with better margins see smaller increases.

Kitchen appliances are also under price pressure this year. A person from a small kitchen appliance company told the reporter that three main factors are at play: first, most Chinese home appliance companies have export businesses, and the RMB exchange rate has risen this year; second, raw material prices have surged sharply; third, domestic inflation is evident.

Some small enterprises remain cautious about raising prices. Li Xiaoxiong, General Manager of Hanmeichi China Marketing Center, told Yicai that this round of home appliance price increases is due to rising raw material costs, involving TVs, refrigerators, washing machines, air conditioners, large kitchen appliances, and lighting. The industry has long been in a state of internal competition, and rising material costs have turned fierce competitors into “friendly rivals” when it comes to price hikes. But for small and medium-sized enterprises still developing, blindly following the trend could lead to greater losses.

Retailers: Strong price increase momentum, implementation takes time

Currently, the prices at home appliance retail terminals are not yet significantly changed, with the market showing a “loud noise but little rain” situation.

A home appliance retailer in Central China told Yicai that due to weak market demand, actual prices have not yet changed noticeably.

“It’s just talk of price hikes. We are still selling last year’s inventory. All brands are preparing to raise prices, but the goods bought in February probably haven’t increased in price, and the market in March wasn’t very good. Whether prices will truly rise later remains to be seen,” said a retailer in East China.

A retailer in Northwest China revealed: several brands have already notified of price increases, but Midea has not. Gree air conditioners have “opened for the peak season,” offering additional policies, but no price hikes yet. Everyone is indeed talking about raising prices, but actual implementation in order-taking has not started.

“This year, home appliance costs have increased. Maybe because we stocked a large amount of inventory at the end of last year to meet annual targets, we haven’t placed many new orders with factories yet. In fact, we are still selling low-priced products, so the price increase isn’t reflected yet. Only a few companies, like some air conditioner brands, have already increased their order prices,” the retailer in the Northwest said.

He believes that the main reason for the higher order prices is the increase in costs of copper, chips, etc. “As for how long this round of price hikes will last, it will depend on the prices of these raw materials. For example, storage chip prices have recently fallen, so TV price increases might slow down a bit, but copper prices haven’t shown signs of dropping yet.”

With the market still weak, everyone is testing the market response, worried that price hikes will add more pressure. The retailer said some brands have not committed to raising prices. Recently, Midea Group Chairman and President Fang Hongbo visited home appliance retailers intensively in western Guangdong and Fujian, speculated to be exploring whether there is room to cut costs in the distribution chain.

“We, as channels, are also trying to reduce costs and minimize losses, hoping to ease the impact of this price increase on consumer demand through cost reduction,” the retailer said. He believes that this round of price hikes will favor factories, brands, and channels with strong cost control, while brands unable to control costs will find it harder to survive.

Analysts: This round of price hikes will accelerate market segmentation

A senior industry observer believes that the phased price increase of home appliances in 2026 is unavoidable because oil, plastics, copper, and other non-ferrous metals have entered a new cycle of price increases. Moreover, due to the recent development of “de-stocking” or even “zero inventory” industry trends, the transmission to the retail market is faster, likely forming a price fluctuation zone within a short period. It is expected to enter a “calm period” around May, gradually eliminating the perceived price increase.

Wang Hongji, head of research insights at NIQ GfK China Home Appliance Research, analyzed for Yicai that some manufacturers have announced price increases for products sold from April 1. Home appliances indeed face upward pressure on raw material prices, providing the motivation for price hikes. But demand-side challenges remain—since 2026, the overall retail sales of home appliances in the first 12 weeks have declined by 13.9% year-on-year, and retail volume by 17.4%, indicating significant demand pressure. From a market competition perspective, insufficient demand will lead to fierce price competition, making it difficult for manufacturers to raise prices significantly. This situation will accelerate industry reshuffling, with leading brands better equipped to handle the “dilemma” through comprehensive responses and high-end market strategies.

“Weak consumption makes companies hesitant to raise prices,” said He Jinming, Vice President of AVC, citing the air conditioning industry as an example. Rising costs of raw materials and copper give strong motivation for price increases, and the industry’s profitability was under pressure in 2025. But the reality is weak retail demand and difficulty in raising prices. Industry leader Gree has not increased prices and offers a 5% channel subsidy, putting pressure on others. Meanwhile, online platforms cater to consumer downgrade trends, stimulating consumption with large single products and low prices. Factory prices for air conditioners are expected to increase by 5%-8% after April, with an average rise of about 100-150 yuan.

Zhao Zhiwei, Vice President of AVC and General Manager of the Kitchen & Bathroom and Home Furnishings division, told the reporter that after April 1, most kitchen appliances are trending toward price increases, especially range hoods and stoves, with increases of 10%-20%. The reasons include: rising energy and raw material costs increasing manufacturing and transportation expenses; companies adjusting product structures in the saturated market, pursuing high-endization; and policy fluctuations.

From an industry impact perspective, first, the industry structure will shift upward, with more high-end and high-quality products; second, to match current prices with consumer demand, companies will strengthen R&D and supply chain management; third, industry reshuffling will accelerate, with some lesser-known brands exiting, leading to greater industry concentration; fourth, short-term demand release may be affected, but long-term development will be healthier.

He Jiyuan, head of research and innovation at AVC, believes this price hike may accelerate market segmentation. Demand will show a K-shaped divergence: price increases have little impact on overall volume, but mid-range products are most affected; low-end products have small price gaps, and high-end consumers are less sensitive to price. On the supply side, the Matthew effect intensifies—uncertain factors impact top-tier companies the least, while long-tail companies face greater difficulties. Distribution channels will also differentiate and transform, with the importance of experience and service value increasingly emphasized.

The senior industry observer predicted that after a brief window of price increases, the home appliance market will gradually return to calm, and the market will continue to develop along the path of quality improvement and efficiency enhancement this year.

(This article is from Yicai)