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After releasing its third‑quarter earnings, Xiaomi has sounded a warning about rising smartphone prices for the coming year. The company says that soaring memory chip costs—driven by the current AI boom—will push handset prices higher.
Why Memory Prices Are Rising
Memory makers such as Samsung are shifting production focus from mobile devices to data‑center AI workloads. With the demand for high‑performance DRAM and NAND flash skyrocketing in the AI sector, the supply available for smartphones is shrinking, pushing prices upward.
What Xiaomi President Lu Weibing Said
“I expect pressure to be much heavier next year,” said Lu Weibing, Xiaomi’s president. He emphasized that the cost hike in memory chips will translate into higher retail prices for new smartphones.
Implications for Consumers and the Market
While the exact impact on retail prices remains to be seen, the trend suggests that flagship models—like the upcoming Xiaomi 17 Pro Max—may carry a premium over this year’s offerings. Manufacturers will need to balance feature enhancements against escalating component costs.
Stay tuned for updates on how Xiaomi and other brands navigate this evolving supply‑chain landscape.
