“Memory Prices Surged Far Beyond Expectations!” Xiaomi Announces Phone Price Hikes

The dramatic fluctuations in memory chip prices are now being transmitted to the end consumer market. Xiaomi Corporation has announced that it will increase the manufacturer's suggested retail prices for some of its currently sold phone models, with the adjustments taking effect from April 11.

Wei Siqi, General Manager of Xiaomi's China Marketing Department, stated on Weibo that the company had previously made efforts to suppress the impact of rising memory chip prices on terminal prices, "but this round of memory price increases and their magnitude have far exceeded expectations." He emphasized that this price adjustment is an unavoidable measure to ensure normal product supply and stable quality.

According to information disclosed by Wei Siqi, three models are affected: REDMI K90 Pro Max, Turbo 5, and Turbo 5 Max.

• The manufacturer's suggested retail price for REDMI K90 Pro Max will be increased by 200 yuan starting April 11.
• Turbo 5 and Turbo 5 Max will cancel their previous Spring Festival special offer, but a 200 yuan subsidy will continue for the 512GB high-memory version.

Xiaomi stated that it will strive to "limit the impact of memory price increases to the smallest possible range of models," implying that the scope of this price adjustment has been minimized and other models are not currently affected.

Lu Weibing, President of Xiaomi Corporation, reposted Wei Siqi's Weibo post and stated that the price of memory chips for the same configuration has nearly quadrupled compared to the first quarter of last year, with the 12+512GB combination increasing by about 1500 yuan, and the 16GB+1TB specification seeing an even more significant rise.

Cost Shock: Memory Chip Prices Skyrocket Nearly Fourfold Year-on-Year

Lu Weibing's statement reveals the magnitude of the current memory chip price surge. He pointed out that compared to the first quarter of last year, the price increase for the same memory chip configuration is close to 400%, with the cost of the 12GB+512GB combination having risen by about 1500 yuan. The higher capacity 16GB+1TB specification saw an "outrageous" increase.

This cost pressure is particularly pronounced for the REDMI series. The REDMI brand has long adhered to "extreme cost-effectiveness" as its core pricing logic. With memory chip costs rising significantly, maintaining the original price range would mean a substantial erosion of profit margins, making a price adjustment an unavoidable choice.

Market Impact: Cost-Effective Brands Under Pressure, Consumers Noticeable Impact

The significance of this price increase lies in the fact that rising memory chip costs have surpassed the digestion capacity of mobile phone manufacturers.

As one of China's leading smartphone brands in terms of shipments, Xiaomi's public announcement of price increases and detailed disclosure of cost pressures may indicate that other manufacturers in the industry are facing similar predicaments.

For consumers, the pricing flexibility of previously competitively priced mid-to-high-end REDMI models has narrowed. Although Xiaomi has promised to limit the scope of price adjustments to the minimum, if memory chip prices remain high, further adjustments cannot be ruled out.

Risk Disclosure and Disclaimer

Markets are risky, and investments require caution. This article does not constitute personal investment advice, nor does it take into account the specific investment objectives, financial situation, or needs of individual users. Users should consider whether any opinion, view, or conclusion in this article is suitable for their specific circumstances. Investment is at your own risk.