Xiaomi to Raise Smartphone Prices as Global RAM Shortage Deepens
Xiaomi has confirmed that it will increase smartphone prices in 2026 as the cost of DRAM continues to surge at an unprecedented rate. President Lu Weibing acknowledged that even with the upcoming price adjustments, the company will still struggle to fully offset rising expenses across its hardware supply chain.DRAM Costs Have Jumped Faster Than Gold
The global memory market has been under intense pressure throughout 2025. DRAM prices have soared by more than 170 percent, significantly outpacing commodities such as gold, which rose around 88 percent over the same period. This explosive demand is driven primarily by the ongoing AI hardware boom, which has reshaped component allocation worldwide.Shortages Intensify, Especially in East Asia
Signs of stress are already visible in consumer markets. Retailers in Japan have started limiting RAM purchases to no more than eight units per customer due to rapid stock depletion. Analysts warn that the supply crunch may extend well into mid-2026, with some experts predicting elevated memory prices for the next decade.Xiaomi Secures Supply but Cannot Avoid Price Adjustments
Xiaomi has taken steps to stabilize production by securing long-term RAM supply contracts covering all of 2026. This ensures uninterrupted smartphone manufacturing even during peak shortages. However, the company admits that it must pass a portion of rising component costs onto consumers while also refining its product lineup to maintain competitiveness.A Global Problem Driven by AI Demand
Industry analysts point to the skyrocketing demand for AI accelerators, servers, and high-bandwidth memory as the main force behind the shortage. As major technology firms race to expand their AI infrastructure, memory suppliers are struggling to keep up, redirecting capacity away from consumer electronics and pushing prices upward across the entire market.What to Expect in 2026
With AI-related demand showing no signs of slowing, the coming year may bring a new era of costlier smartphones. While Xiaomi’s secured contracts provide short-term stability, the broader market continues to face sustained pressure. Consumers, retailers, and manufacturers alike should prepare for continued volatility in memory pricing and potential downstream effects on device availability.Editorial Team — CoinBotLab