Chinese smartphone maker Xiaomi warned that rising memory chip prices are driving up the cost of its devices, potentially affecting sales amid an already competitive global market.
The company said that increased prices for components such as DRAM and NAND flash memory have put pressure on manufacturing costs, forcing Xiaomi to adjust retail prices for some of its smartphones. A spokesperson noted that the move is necessary to maintain product quality and ensure sustainable business operations.
Xiaomi, one of the world’s leading smartphone brands, highlighted ongoing supply chain challenges and strong demand for memory chips across the electronics industry as key factors behind the price surge. Analysts say that the rising component costs could affect consumer demand, particularly in price-sensitive markets.
Despite the cost pressures, Xiaomi remains focused on innovation and product expansion, including its 5G devices and IoT ecosystem. The company emphasized that it is exploring strategies to manage component expenses while minimizing the impact on customers.
Industry experts note that Xiaomi is not alone in facing higher memory chip prices, as global semiconductor markets continue to experience volatility driven by demand-supply imbalances and geopolitical tensions.
Xiaomi’s announcement underscores broader challenges for smartphone manufacturers navigating rising production costs, with pricing strategies likely to remain a key focus in the months ahead.
source: cnbc.com
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