Xiaomi CEO Lei Jun has cautioned that smartphone prices could climb higher in the coming years due to rising memory chip costs across the industry.
Speaking at the launch of the Xiaomi 17 Max, Lei Jun suggested that users who upgrade their phones annually may want to purchase sooner.
>>> Samsung Galaxy Z Fold 8 and Z Flip 8 Could Get Pricier Higher Storage Variants
He noted that ongoing increases in component costs could push prices up.
Lei Jun told media after the event that Xiaomi was among the first smartphone brands to warn about rising memory prices last year.
He expects memory chip costs to keep rising for at least the next two years, adding pressure on the industry.
The executive explained that higher storage and memory prices are already affecting production costs for smartphones and other consumer electronics.
>>> Samsung may use BOE OLED panels for Galaxy S27 to cut costs
Xiaomi is working to reduce the impact on customers by improving supply chain efficiency and making internal optimizations.
Lei Jun said the company is absorbing some additional costs instead of passing them directly to buyers.
However, he indicated that keeping prices stable may become harder if memory costs continue rising at the current pace.
Industry-Wide Price Pressure
Xiaomi Group president Lu Weibing recently shared a similar view during a livestream.
>>> OnePlus Nord CE 6 vs Redmi Note 15 Pro+: Which Mid-Range Phone Wins?
He predicted that several premium flagship smartphones from Chinese brands could exceed 10,000 yuan (~$1,470) by the end of this year.
Lu Weibing also stated that the current memory price increases may continue until at least the end of 2027, possibly extending into 2028.
He said pressure on key upstream components is unlikely to ease soon.
The smartphone market is already feeling the effects.
>>> 5 Best Snapdragon 8 Elite Phones: Top Picks for 2026
Since March this year, many smartphone models in China have reportedly seen price increases of 200 to 400 yuan due to higher component costs.
