His statements came during a live broadcast, where he explained that the traditional flagship phone category, known as the “Candybar” design, is likely to see a noticeable rise in prices during the coming period, due to increasing pressures on production costs, especially with regard to memory chips. The high cost of memory changes the pricing equation.
Weibing pointed out that the significant rise in the prices of DRAM chips and NAND Flash memory has become one of the most prominent factors reshaping smartphone pricing policy, pointing out that companies are finding it increasingly difficult to absorb these increases without passing part of them on to the consumer, according to what was reported by the “gizmochina” website.
For comparison, the Xiaomi 17 Ultra phone was launched in the Chinese market at a starting price of 6,999 yuan (about $980) for the 12 GB + 512 GB version when it was launched last December, which shows the size of the potential difference if prices reach the expected levels.
Pressure extending until 2027 and perhaps 2028
The Xiaomi president added that the crisis in supplying memory chips will not be resolved quickly, as the establishment of new production lines requires many years before they enter actual service, at a time when global demand continues to rise, especially from the artificial intelligence and high-performance computing server sector.
The company’s estimates indicate that the pressure on memory prices may extend until 2027 and perhaps 2028, which means that its direct impact on phone pricing will continue in the coming years. “Xiaomi 17 Max” is under attention.
These developments appear in conjunction with the anticipation for the launch of the Xiaomi 17 Max phone, which has been prepared in the Chinese market and will be launched during the month of May.
Leaks indicate that it will come with leading specifications that include a 6.9-inch screen, a Snapdragon 8 Elite Gen 5 processor, a 200-megapixel main camera from Leica, in addition to an 8000 mAh battery.
An entire sector is under pressure
These challenges are not limited to Xiaomi, as companies such as Oppo, Vivo, and Honor are facing the same pressures as a result of the high cost of components globally, which is reshaping the pricing mechanism in the smartphone market.
Despite this, Xiaomi confirms its continued efforts to maintain competitive value for users as much as possible, while the most prominent question remains about the extent to which consumers will accept prices that may exceed 10,000 yuan, in a potential shift that may radically reshape the features of the phone market in China.
