A major smartphone manufacturer reveals shocking increases in component prices.
The current DRAM crisis has a surprisingly precise financial impact, and Xiaomi is one of the few major tech companies willing to explain to consumers what is happening with component costs.
Xiaomi has taken a bold step that many tech companies have avoided — openly discussing the increase in smartphone memory prices. Lu Weibing, president of Xiaomi’s smartphone division, shared insights on Weibo (the Chinese social media platform) regarding how the ongoing DRAM crisis has impacted overall manufacturing expenses.
How significant are the numbers?
Acquiring 12GB of RAM along with 512GB of storage now costs Xiaomi around 1,500 yuan, approximately $220, a substantial rise from just a year prior. To put this into context, that represents nearly a fourfold increase in memory prices compared to the first quarter of 2025.
To better understand, 12GB of memory and 512GB of storage are common in mid-range Android smartphones. These models are favored by consumers seeking good specifications and value without paying premium prices for flagship devices.
However, the situation is even worse for high-end devices featuring 16GB of memory and 1TB of storage. Weibing did not disclose the exact cost for such models, which speaks volumes about the situation. Unsurprisingly, the company cannot absorb such a significant increase in component costs.
Who will feel the impact first, and when?
The Redmi lineup will be the first to be affected. Three models — the Redmi K90 Pro Max, Redmi Turbo 5, and Redmi Turbo 5 Max — will experience price hikes in Xiaomi’s home market starting April 11, 2026. It is somewhat ironic that Redmi, a brand known for its affordability, finds itself suffering the most from this crisis.
Global markets have not yet been impacted, although internationally, Xiaomi's prices tend to be higher, which could help mitigate the effects. Weibing noted that prices would decline once the memory market stabilizes. However, many analysts predict that the memory crisis will persist until the end of this decade.
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A major smartphone manufacturer reveals shocking increases in component prices.
In just a year, memory prices have increased fourfold, and next week, three Redmi models will see a rise in price. Meanwhile, a leading executive at Xiaomi is one of the few in the tech industry who is openly explaining to consumers the current situation behind the scenes.
