Xiaomi CEO Lei Jun has warned that smartphones could become even more expensive in the coming years as memory chip prices continue to rise across the industry.
Speaking during the launch event of the Xiaomi 17 Max, Lei Jun said users who regularly upgrade their phones every year may want to consider buying sooner rather than later. According to him, the ongoing rise in component costs could push smartphone prices higher in the future.
After the launch event, Lei Jun told media outlets that Xiaomi was among the first smartphone brands to publicly warn about rising memory prices last year. He said the cost of memory chips is expected to continue increasing for at least the next two years, putting additional pressure on the smartphone industry.
The executive explained that rising storage and memory prices are already affecting production costs for smartphones and other consumer electronics products. Despite this, Xiaomi says it is trying to reduce the impact on customers by improving supply chain efficiency and making internal technological optimizations.
Lei Jun said the company is working to absorb some of the additional costs instead of directly passing them on to buyers. However, he also suggested that keeping prices stable may become more difficult if memory costs continue climbing at the current pace.
Xiaomi officials are continuously warning about price hikes
Lu Weibing, president of Xiaomi Group, recently shared a similar view during a public livestream. He predicted that several premium flagship smartphones from Chinese brands could officially cross the 10,000 yuan (~ $1470) mark by the end of this year.
Lu Weibing also claimed that the current round of memory price increases may continue until at least the end of 2027, with the possibility of the trend extending into 2028. According to him, the pressure on key upstream components is unlikely to ease in the short term.
The smartphone market is already starting to feel the effects. Since March this year, many smartphone models in China have reportedly seen price increases ranging between 200 and 400 yuan due to higher component costs.
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