Rising memory chip costs are putting the smartphone market under pressure, and Xiaomi is warning that the effect may not ease soon. The company sees a prolonged stretch of higher component expenses, which could push handset prices upward across the industry.
Lei Jun, CEO of Xiaomi, said users who normally replace their phones every year should consider buying earlier. He argued that device prices may become more expensive if component costs continue to climb.
Cost pressure is spreading across the industry
The immediate trigger is the sharp rise in memory chip prices, which is lifting production costs in global technology manufacturing. That pressure is not limited to smartphones and is also affecting other consumer electronics categories.
Xiaomi says it is still trying to absorb part of the cost increase so the burden does not fall directly on consumers. The company is also working on supply chain efficiency and internal technology optimization to keep its products competitive.
Even so, Lei Jun said maintaining stable smartphone pricing will become harder if memory chips keep rising. He also noted that Xiaomi was among the first smartphone brands to warn about memory price increases as early as last year.
A longer pricing cycle may be ahead
The company’s outlook suggests the current situation is not a short-term shock. Lei Jun said memory chip costs are expected to keep rising for at least the next two years.
That warning was reinforced by Xiaomi Group President Lu Weibing, who said in a public livestream that flagship smartphones from Chinese brands could reach 10,000 yuan, or around US$ 1,470, by the end of this year. He also said the memory price trend could last until the end of 2027 and potentially continue into 2028.
Those comments point to sustained pressure on a core component of consumer tech products. For smartphone makers, that means pricing decisions may become harder as they try to balance competitiveness with higher input costs.
The market is already feeling it
The impact is starting to show in China’s smartphone market. Since March 2026, several smartphone models have reportedly become 200 to 400 yuan more expensive as production costs increased.
That shift forces brands to reconsider retail pricing, product positioning, and how much of the added cost they can absorb. Premium devices may be especially exposed if memory prices remain elevated for longer.
For consumers, Xiaomi’s warning is a sign that handset prices may keep moving higher while memory chip costs stay under pressure. It also explains why the company is signaling the issue early, before the next round of price adjustments becomes broader.
Source: www.beritasatu.com
