Xiaomi Secures Memory Supply for 2026, Plans to Raise Smartphone Prices to Offset Costs

Xiaomi has swiftly navigated the complexities of the semiconductor market by securing its memory chip supply for the entirety of 2026. This proactive move places the company in a stronger position as it faces the challenges posed by fluctuating component costs.

Xiaomi Secures Memory Chip Supply for 2026

According to a report by the Chinese outlet Aijiwei, Lu Weibing, President of Xiaomi Group, revealed that the company has successfully entered into a contract to ensure a stable supply of memory chips through 2026. This contract aims to bolster their production capabilities in a demanding market.

Details regarding the specific semiconductor manufacturer involved remain undisclosed. Nevertheless, securing such supply contracts typically incurs significant costs, prompting expectations of a rise in the retail prices of Xiaomi products.

As Xiaomi focuses on enhancing its smartphone offerings with more premium devices, it is well-positioned to adjust retail prices in accordance with the increased component costs. This strategic pivot underscores the brand’s commitment to scaling its presence in the competitive mobile market.

Weibing acknowledged the current trends in memory chip pricing, noting that they are part of a “long cycle.”He stated:

“In the past, it was basically a large fluctuation cycle in the mobile phone industry that affected the price of the entire memory. However, this round was mainly due to the strong increase in HBM demand brought by AI, which drove the world (memory prices rose), which was different from before.”

This sentiment echoes previous discussions within the company regarding the impact of rising memory costs on smartphone pricing. In a recent Weibo post, Weibing addressed criticisms related to price increases for the Redmi K90 series. He stated that Xiaomi “cannot change the trend of global supply chains, and the rise in storage costs is much higher than expected and will continue to increase.”

In an effort to counterbalance customer concerns, Weibing had previously announced a discount of 300 yuan ($42) on the 12GB + 512GB model of the Redmi K90 series. This pricing strategy indicates that the company has sufficient margins to accommodate subsequent discounts, revealing their calculated approach to maintaining competitiveness in the market.

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