Xiaomi launches Leica-backed phone as AI chip costs push price up

Xiaomi has launched the 17 Ultra, a new premium smartphone developed with German camera maker Leica, starting at US$998.

A special edition with Leica branding and a camera-inspired design is priced from about US$1,100.

The price is around 8% higher than its predecessor, which Xiaomi said was due to rising memory chip costs driven by AI demand.

Key features include a 6.9-inch display, 512GB of storage, improved night photography, a better battery, and enhanced temperature control for longer photo sessions.

IDC said Xiaomi ranked third in global smartphone shipments in Q3 2025, with a 43.5% share.

While China’s smartphone market fell 2.7% year-on-year in Q3, demand for high-end models remained strong, according to Counterpoint Research.

🔗 Source: South China Morning Post

🧠 Food for thought

Implications, context, and why it matters.

Xiaomi’s trade-in partnerships could soften the 8% price increase

Recommerce Group, a device trade-in and refurbishment platform, runs integrated trade-ins in 13 European countries, embedded on product pages to show an estimated value during checkout. Payouts arrive after inspection 1.
Malaysia adds bonuses up to RM600, about $135, for select buys. Minimum buyback is RM300 for other brands, RM200 for Xiaomi devices 2.
The UK ran a similar push from September to October 2025 with mi.com coupons or cashback. Payments landed within 7 to 14 working days after meeting the rules 3.
Memory chip costs lifted the 17 Ultra price by 8% over its predecessor. These programs can ease the jump for buyers who watch their budgets.

Buy-now-pay-later (BNPL) providers can target Xiaomi’s flagship buyers in markets lacking trade-in coverage

Coverage spans 13 European countries and parts of Asia like Malaysia. Availability in India, Southeast Asia beyond Malaysia, and other emerging markets remains unclear 1 2.
Launch price sits near $998, or CNY 6,999. That is a steep upfront outlay in price-sensitive markets where Xiaomi sells well 4.
BNPL firms can plug financing gaps in regions without trade-ins. Premium buyers still spend even as China’s smartphone market fell 2.7% year over year.
The 17 Ultra adds longer battery life and better temperature control for extended photo sessions. That supports business-focused BNPL options at checkout.