Xiaomi may use alternative processors in flagships to cut costs

Rumors are circulating about a possible strategic shift from Xiaomi regarding its flagship processors. The driving force appears to be rising component costs—not just for Qualcomm chipsets themselves, but also for DRAM and NAND memory. This pressure is compounded by the industry's move to TSMC's 2nm manufacturing process, which significantly hikes production expenses.

Insiders suggest most models in Xiaomi's new flagship lineup could feature either the standard Snapdragon 8 Elite Gen 6 or an alternative like the MediaTek Dimensity 9600. The more advanced Snapdragon 8 Elite Gen 6 Pro is likely to remain exclusive to the top-tier Ultra model.

This detail matters because it highlights a market trend. Sources indicate Qualcomm may position the Pro version specifically for the ultra-premium segment. Its high price tag makes it less appealing for mass-market flagships. For context, the previous generation of flagship chips reportedly cost around $280, and the shift to a 2nm process only pushes that figure higher.

According to reports, the base Xiaomi model, along with the Pro and Pro Max variants, could launch this autumn without the Pro chip. In practice, this means the Xiaomi 18 Ultra, designed for peak performance, is the most probable candidate to receive it. The Pro version is rumored to offer expanded cache memory and more powerful graphics. However, against the backdrop of soaring silicon wafer and RAM prices, even these advantages might not justify widespread adoption.

Overall, the picture is straightforward: the smartphone market is growing increasingly cost-sensitive. Even major manufacturers must carefully balance performance with profitability. If these rumors hold true, Xiaomi will prioritize optimization, reserving the highest-end configuration solely for its most expensive model.