Xiaomi CEO Lei Jun warned that smartphones may become notably more expensive in the near future. He attributed this to the ongoing rise in memory chip prices, which is already driving up costs for mobile devices and other consumer electronics.
Lei Jun made these comments at the launch of the Xiaomi 17 Max. He suggested that users who habitually upgrade their phone every year might want to buy sooner rather than waiting for the next generation. He stressed that pressure from component costs is mounting, making it harder for manufacturers to hold current prices.
After the event, Lei reminded journalists that Xiaomi was one of the first to publicly warn about memory price increases as early as last year. The company estimates that memory costs could continue climbing for at least the next two years. This adds extra strain on the entire smartphone market, especially models with larger RAM and storage capacities.
Xiaomi says it is trying to soften the blow for customers through supply chain optimization and internal technical solutions. The company is prepared to absorb some of the added expenses itself, but Lei Jun made clear that if the present trend continues, fully containing price increases will become increasingly difficult.
Xiaomi Group President Lu Weibing recently echoed a similar view. He suggested that by the end of this year, some premium flagships from Chinese brands could officially exceed 10,000 yuan, or about $1,470. According to him, the new memory price cycle might last until the end of 2027, and in a worst-case scenario could extend into 2028.
The initial effects are already visible on the Chinese market. Since March, many smartphones have reportedly increased by 200–400 yuan due to rising costs of key components. If the trend holds, manufacturers will have to choose between slimmer margins, simpler specs, or higher prices for end users.