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Xiaomi Hikes Smartphone Prices as DRAM and NAND Costs Soar

AI demand is pushing Q2 memory contracts sharply higher, analysts say.

Overview

  • Xiaomi raised prices by about 200 yuan on three phones, citing surging memory chip costs after domestic rivals increased prices in March.
  • TrendForce projects second‑quarter contract prices jumping 58% to 63% for DRAM and 70% to 75% for NAND, driven by AI and data‑center orders.
  • Counterpoint says retail phone price hikes are unavoidable in 2026 as memory and storage inflate component bills, with some flagships facing $100 to $150 higher build costs.
  • For sub‑$200 phones, a typical 6GB LPDDR4X RAM and 128GB eMMC setup can account for 43% of the parts cost, pushing brands to cut shipments or trim non‑essential specs.
  • Supply is tight as chipmakers prioritize higher‑margin AI buyers and face rising costs for chemicals, metals, energy, and freight, a squeeze now spilling into PCs as well.