Xiaomi passes rising RAM costs to consumers with price hikes
Chinese manufacturer increases prices on smartphones and tablets due to soaring memory costs.
1Xiaomi's price increase decision
Xiaomi announced it will raise prices on various smartphone and tablet models in Japan due to increasing memory and component costs. The highest increase will be 20,000 yen ($137) for Xiaomi 17T Pro and POCO X8 Pro models, with some devices becoming up to 25% more expensive. The company stated it had previously absorbed these cost increases but can no longer sustain this practice. The new prices reflect the challenging global supply chain conditions affecting the tech industry.
2Affected models
The Xiaomi 17T Pro with 12GB RAM/256GB storage will increase from 119,800 yen to 139,800 yen, while the 12GB/512GB version will jump from 139,800 yen to 159,800 yen. The POCO X8 Pro Max 12GB/256GB model will rise from 79,980 yen to 99,980 yen, and the 12GB/512GB version will go from 89,980 yen to 109,980 yen. Tablets will see smaller increases ranging from 2,000 to 10,000 yen. New prices take effect September 1 for Xiaomi and Redmi products, and September 4 for POCO models.
3Industry-wide trend
Xiaomi's move aligns with the broader trend of price increases in the Android smartphone market. Apple is also expected to raise prices for its new iPhone models launching next month. According to Reuters, Xiaomi's smartphone business already felt the impact of higher component costs in Q2 2026, with smartphone revenue declining 7.5% year-over-year and shipments plunging 26%. The memory price surge continues to pressure manufacturers' margins across the industry.
4Impact on Chinese market
Counterpoint Research reported a 13% decline in smartphone sales during China's 618 shopping festival as manufacturers reduced discounts to offset higher memory costs. This situation particularly affects Chinese Android manufacturers like Xiaomi, as memory represents a significant portion of their devices' component costs. Passing these costs to consumers could further dampen demand in an already softening market. The price increases come at a time when global smartphone shipments are experiencing downward pressure.
5Xiaomi's strategic approach
Xiaomi is attempting to mitigate the negative impact for its upcoming smartphone launch. The company stated its new phone, scheduled for release next week, will be priced with 'maximum consideration' to maintain accessibility for consumers. While Xiaomi Japan hasn't officially confirmed the model, the company has planned announcements for IFA. This balancing act reflects the challenge manufacturers face in maintaining market share while dealing with rising costs.
6Challenges in consumer electronics
Soaring memory prices are affecting the entire consumer electronics industry. Chinese manufacturers especially are struggling to maintain their competitive pricing strategies in mid-range and budget segments. Xiaomi's decision may prompt similar moves from competitors. Consumers, facing economic uncertainty, might delay new device purchases or turn to refurbished markets. The situation highlights the fragile balance between component costs, consumer demand, and manufacturer profitability.
7Global supply chain issues
The memory chip supply-demand imbalance continues post-pandemic, with semiconductor shortages and rising energy costs pushing production expenses higher. Chinese manufacturers are forced to pass these costs to consumers. Industry analysts predict memory price increases could persist through late 2026. The situation underscores broader challenges in tech manufacturing, where geopolitical factors and raw material availability significantly impact product pricing and availability.
8Changing market dynamics
Xiaomi's price adjustments could reshape smartphone market dynamics. Mid-range price increases might lead consumers to extend device usage cycles or explore second-hand markets. Manufacturers will need to invest in new technologies to reduce costs, potentially accelerating industry consolidation. Smaller players may struggle to compete, leading to further market concentration among major brands. These developments could redefine value propositions across price segments in coming years.
Original article: Android Authority — Xiaomi, artan RAM maliyetlerini tüketiciye yansıtıyor