Xiaomi has foreseen that the prices of the upcoming smartphones will surge. Aside from the rising cost of operations in AI, it's important to note that there's also an increasing price for the memory chips. These are essential to run the advanced features in a handset.
AI Boom Drives Memory Costs Higher
With the AI boom, people should be aware that the processor demand is also affected. Memory manufacturers, including Samsung, would prioritize production for data centers and AI infrastructure over smartphones, as this sector promises far higher profits.
According to GSM Arena, this has created a supply bottleneck for mobile memory, inevitably affecting the cost of producing smartphones.
Xiaomi's 2026 Outlook on Smartphone Pricing
Xiaomi President Lu Weibing has now warned that those market dynamics will mean significantly higher smartphone prices next year.
"I expect pressure to be much heavier next year than this year. Overall, consumers are likely to see a sizeable rise in product retail prices. Some of the pressure may have to be addressed through price hikes, but price increases alone won't be enough to digest it."
Reuters reports that this outlook suggests that the trends in smartphone pricing are unlikely to decelerate anytime soon. Even while consumers are hoping for stabilization, current market trends are pointing to another year of rising costs across the board.
Why Smartphone Prices Keep Climbing
Therefore, the trend is clear: smartphone prices have climbed for several years now, and that shortage of memory chips piles on more pressure. Inflation, higher component costs, and increased consumer demand for high-performance devices have given impetus to the price trend.
With AI-driven memory demand reaching unprecedented levels, manufacturers are forced to make tough allocation decisions. Smartphones are often deprioritized, driving up the cost of key components like RAM and storage.
What Consumers Can Expect
Well, according to Xiaomi's predictions, consumers should get ready for more expensive devices in 2026. As attractive as the development of technology and enhanced device capabilities is, their price tag is exactly what turns this into a trade-off.
This may mean buyers will carefully weigh which features are important and expect larger investments in premium devices. The smartphone market shows no signs of slowing its upward trajectory. Now and then, you have to be alert even for just a minor uptick in the prices.
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