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Xiaomi President Lu Weibing says memory prices have surged nearly fourfold since early 2025
Friday, April 3, 2026 at 02:48 AM
Xiaomi President Lu Weibing noted that memory component costs have surged significantly, with some configurations seeing nearly a fourfold price increase compared to Q1 2025. This supply chain cost pressure is impacting the pricing strategy for the Redmi product line.
Context
Xiaomi Group President Lu Weibing recently stated on Weibo that memory prices have surged nearly fourfold since Q1 2025, describing the magnitude of this increase as having far exceeded all expectations. Specifically, high-end configurations like the 16GB+1TB version have risen to what Lu called an "absurd degree," while the 12GB+512GB tier has seen costs jump by approximately RMB 1,500. This volatility has forced Xiaomi to raise retail prices on its value-focused REDMI line, including a 200 yuan ($29) hike for the K90 Pro Max effective April 11, 2026.
The price surge is driven by a critical "DRAM crisis" as major chipmakers like Samsung, SK Hynix, and Micron reallocate capacity toward high-bandwidth memory for AI data centers. TrendForce reports that DRAM contract prices climbed by up to 95% in Q1 2026 alone, while NAND flash is projected to jump another 70-75% in Q2. This structural shift toward AI-driven demand has created a severe supply shock for consumer electronics, with some industry experts warning that these shortages could persist until 2030.
Sources (10)
Xiaomi lifts handset prices as memory chip crunch ripples through supply chain | South China Morning PostChina's Xiaomi says surging memory chip prices push up smartphone costs | ReutersDRAM and NAND costs hit 90% of smartphone prices, squeezing low-end profitsXiaomi reveals how much smartphone costs have actually risen due to the DRAM crisis - NotebookCheck.net NewsDRAM prices predicted to jump 63% in Q2, NAND up to 75% — follows 95% jumps in Q1, Trendforce says AI server demand keeps supply tight | Tom's HardwareHow much will RAMageddon hike flagship prices? Top phone ...DRAM and NAND prices jump as Samsung, SK Hynix and Micron tighten supply - Astute GroupNAND Flash Prices Forecast to Surge Over 40% in Q1 Amid AI Server Demand Boom, Repeating DRAM-Style 'Supply Shock' — BigGo Finance
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