Don't hesitate to buy a new phone, advises Xiaomi CEO. Prices are reportedly going up

For years, we’ve grown accustomed to new generations of phones offering better features for roughly the same price. That era seems to be ending. Founder and CEO of Xiaomi Lei Jun openly admitted during the launch of the flagship Xiaomi 17 Max model that smartphones will continue to get more expensive. And he directly advised customers who change their phones annually not to delay their purchase.

The price increase is due to the AI hype

The main reason is the sharp increase in memory chip prices. Memory manufacturers are shifting capacities from conventional consumer electronics to high-speed memory for AI-powered data centers, which is causing a shortage and price increase of standard DRAM and NAND flash memory modules used in phones. Lei Jun noted that Xiaomi was among the first brands to publicly warn about this risk last year.

According to him, memory prices will rise for at least another two years. This is not a short-term fluctuation, but rather a structural problem for the entire industry. The impacts are already visible. Since March, Xiaomi has raised prices for several Chinese models by 200 to 400 yuan (approximately 600 to 1,200 CZK), and according to available information, competitors OPPO and vivo have followed suit. Xiaomi claims it wants to absorb some of the additional costs through a more efficient supply chain, but keeping prices completely in check will reportedly become increasingly difficult.

Flagships may exceed the 10,000 yuan mark

Group President Lu Weibing was even more specific, stating that several premium flagship models from Chinese brands could exceed the 10,000 yuan mark by the end of this year, which is an unusually high amount for models sold in China. For example, the Xiaomi 17 Ultra in its highest 16/1024GB configuration was available to local buyers for 8,499 yuan at launch. He also expects the current wave of memory price increases to last at least until the end of 2027, and did not rule out the trend extending into 2028.

Is it worth speeding up the purchase?

For whom does this advice make sense, and for whom does it not? If you change your phone every year or two and are planning to upgrade anyway, it might be better to speed up your purchase rather than buying the next generation at a higher price. On the other hand, if you keep one phone for three to four years, there’s no need to panic. Your next purchase will likely be more expensive, but rushing to replace a functional phone for a saving of a few hundred doesn’t make economic sense.

Don't hesitate to buy a new phone, advises Xiaomi CEO. Prices are reportedly going up Adam Kurfürst News Adam Kurfürst News

It’s also fair to add that the warning came from a manufacturer who undoubtedly has an interest in selling phones right now. However, the trend of rising memory prices is confirmed by multiple sources across the industry, so it cannot be dismissed as mere marketing.

Are you delaying buying a new phone, or are you planning to get one this year?

Sources: Gizmochina, LatestLY, Ad Hoc News