Brace yourselves: memory prices are surging, and even flagship phones are feeling the heat. Xiaomi rolled out its new top-tier pair, the Xiaomi 17 and 17 Ultra, at Mobile World Congress in Barcelona on March 28, 2026, aiming to take on Samsung and Apple in the premium segment.
Despite a dramatic jump in memory-chip costs, Xiaomi kept its price points steady relative to last year’s flagship models. The Xiaomi 17 starts at 999 euros (about $1,179), while the 17 Ultra begins at 1,499 euros.
Memory has become a major cost driver for smartphones. In the first quarter of this year, prices for memory chips climbed roughly 80%–90%, driven by a shortage as suppliers divert supply to data centers fueling AI workloads, industry analysts note.
Overall, memory remains one of the most expensive parts of a phone. Gartner projects a possible 13% uplift in smartphone prices in 2026, and IDC expects the market to shrink by about 12.9% that year due to the chip crunch.
Analysts suggest that premium-priced models may be better positioned to absorb higher costs, while mid-range devices could bear the brunt of any price increases.
Commentators also point out that Xiaomi’s premium share isn’t as dominant as some rivals, which could limit its ability to offset margin squeeze across its portfolio. Still, the company signaled in November that price hikes for 2026 are likely across the industry.
Industry observers anticipate Xiaomi will need to adjust prices on its lower-to-mid-tier devices, even as the company broadens its revenue mix. In parallel with hardware, Xiaomi has been expanding its electric-vehicle (EV) business in China, which now accounts for roughly a quarter of group sales and has emerged as a key growth engine amid the memory crunch.
On the financial front, Xiaomi reported a modest 3% year-over-year drop in smartphone revenue in the September quarter, while its EV segment surged by nearly 200%.
Would you pay more for a phone to get stronger memory and AI-ready performance, or does the price squeeze push you toward mid-range options? Share your thoughts in the comments.
