Recent financial disclosures from Xiaomi highlight a looming challenge in the smartphone industry: rising component costs, particularly for memory chips, which are expected to push device prices higher in 2026.
The surge in demand for memory driven by artificial intelligence applications has caused key suppliers like Samsung to prioritize production for AI data centers over smartphones. This shift is contributing to escalating memory prices globally.
Xiaomi 17 Pro Max
Xiaomi President Lu Weibing has warned consumers and industry observers alike, stating, “I expect pressure to be much heavier next year than this year. Overall, consumers are likely to see a sizeable rise in product retail prices. Some of the pressure may have to be addressed through price hikes, but price increases alone won’t be enough to digest it.”
In essence, the upward trajectory of smartphone costs is expected to continue unabated into 2026, making new devices more expensive for buyers. While some hope prices might stabilize or drop, current market trends and past patterns suggest otherwise.
