Xiaomi warns flagship smartphones could exceed $1,400 by late 2026

Monday 18 May 2026 - 08:03

By: Dakir Madiha

Xiaomi warns flagship smartphones could exceed $1,400 by late 2026

Xiaomi president Lu Weibing warned Friday that premium smartphones in China could surpass 10,000 yuan, or roughly $1,400 to $1,500, by the second half of 2026 as memory chip shortages continue driving manufacturing costs sharply higher across the industry.

The warning came during a livestream event on May 16 titled “Spend a ‘Max’ Summer with the President,” where Xiaomi also previewed its upcoming Xiaomi 17 Max smartphone. Lu said pricing discussions for the device are still underway internally as component costs continue to rise.

The main pressure comes from a global shift in memory chip production linked to booming artificial intelligence infrastructure demand. As shipments of AI servers accelerate, major suppliers including Samsung Electronics, SK Hynix, and Micron Technology have redirected manufacturing capacity toward high bandwidth memory products designed for data centers. That transition has reduced supply for consumer DRAM and NAND flash memory used in smartphones and other electronics.

Lu previously disclosed on Weibo that memory costs for a standard 12GB RAM and 512GB storage configuration had increased by around 1,500 yuan compared with the first quarter of 2025. Data from Counterpoint Research showed DRAM prices rose more than 50% while NAND flash prices jumped over 90% during the first quarter of 2026 compared with the previous quarter.

According to Lu, pressure on memory pricing could continue through 2027 or even 2028 because expanding semiconductor production capacity requires years of investment and construction. TrendForce forecasts that global AI server shipments will increase more than 28% in 2026, further intensifying competition for advanced memory components.

Xiaomi has already started adjusting prices in response to higher costs. The company raised the price of the Redmi K90 Pro Max by 200 yuan in April and reduced promotional discounts on its Turbo 5 and Turbo 5 Max series. Rival Chinese brands have taken similar steps. OPPO and OnePlus introduced price increases on selected entry-level and mid-range devices as early as March, with hikes ranging from 100 to 500 yuan.

Vivo and iQOO followed with increases between 500 and 1,000 yuan on certain models. Honor also quietly raised prices for several recent releases.

The Xiaomi 17 Ultra launched at 6,999 yuan for its base 12GB and 512GB configuration. If Lu’s projections prove accurate, flagship smartphones from Chinese brands could soon approach pricing levels traditionally associated with Apple devices in China, a threshold domestic manufacturers have historically avoided crossing.

Research firm IDC expects worldwide smartphone shipments to decline around 13% in 2026 while average selling prices reach record highs as manufacturers pass rising component costs to consumers.