Xiaomi warns flagship smartphone prices could jump by up to 30%: Why they are getting more expensive

Xiaomi expects a significant increase in the price of its flagship smartphones. By the end of 2026, the company’s top-tier devices could cost more than 10,000 yuan (around $1,500), according to Xiaomi president Lu Weibing.

The main reason behind the expected price hikes is the continuing rise in the cost of key components, particularly DRAM and NAND memory. According to the executive, manufacturers are finding it increasingly difficult to absorb growing production costs without raising retail prices.

Comparing current prices

To understand the scale of the increase, Xiaomi’s current flagship, the Xiaomi 17 Ultra in its 12 GB / 512 GB configuration, launched in late 2025 at around 7,000 yuan (roughly $1,000). That means future flagship prices could rise by as much as 30–40% within a relatively short period.

Inside the company, discussions are reportedly underway regarding pricing strategies for upcoming models, including the Xiaomi 17 Max. No final decisions have been made yet, as market conditions remain highly unstable.

Why memory prices are rising

The biggest pressure on pricing comes from exploding demand for memory chips driven by:

• artificial intelligence
• server infrastructure
• high-performance computing

Building new memory-chip manufacturing facilities takes several years, making it impossible to solve supply shortages quickly. Xiaomi believes elevated DRAM and NAND prices could persist at least through 2027, and in some sectors potentially until 2028.

In brief

Xiaomi has warned that flagship smartphone prices may rise sharply in the coming years. By the end of 2026, top models could cost more than 10,000 yuan (about $1,500), representing an increase of 30% or more compared to current prices. The primary reason is the continuing surge in DRAM and NAND memory costs amid booming demand from AI systems and server infrastructure. The company is still discussing how exactly it will respond to the changing market reality.