Xiaomi warns smartphone prices will rise in 2026 due to a memory supply crunch.
Chipmakers are shifting to AI-related memory, driving up component costs.
All phone segments may get pricier as supply pressure continues into 2026.
Xiaomi may raise its smartphone prices in 2026 as the global memory market undergoes a major shift that is driven by rising demand for artificial intelligence hardware. The company’s most recent Q3 2025 financial report describes a tightening supply environment, with memory manufacturers increasingly shifting production to data-center components, a trend that is already raising the cost of smartphone memory.
SurveyXiaomi Group President Lu Weibing stated that the industry is entering a more challenging period, with the financial burden on smartphone manufacturers increasing next year. “The pressure we will face in 2026 is considerably heavier than what we’ve seen this year,” he said. The statement hints that memory suppliers are moving towards AI-related orders because they have higher profit margins.
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Major memory chipmakers like Samsung are increasing their investment in AI servers and cloud infrastructure, resulting in a limited supply of mobile devices. This redirection is already causing a steady rise in memory prices, which the company predicts will accelerate in the coming months.
Lu added that, while manufacturers may be forced to raise retail prices to offset higher component costs, these adjustments will not fully offset the financial impact. Both budget and premium smartphones are likely to increase in price.
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According to industry analysts, the AI surge has fundamentally altered production priorities in the semiconductor ecosystem. As AI workloads increase, memory capacity requirements for data centres skyrocket, leaving smartphone manufacturers competing for a shrinking share of supply. With no immediate signs of relief, smartphone prices are expected to rise until at least 2026.
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Ashish Singh
Ashish Singh is the Chief Copy Editor at Digit. He's been wrangling tech jargon since 2020 (Times Internet, Jagran English '22). When not policing commas, he's likely fueling his gadget habit with coffee, strategising his next virtual race, or plotting a road trip to test the latest in-car tech. He speaks fluent Geek. View Full Profile
