Xiaomi warns memory chip shortages may hike phone prices in 2026

Xiaomi expects memory chip shortages to drive up mobile device prices in 2026.

The Beijing-based electronics maker has signed supply agreements for next year, according to president Lu Weibing.

Lu said Xiaomi will factor higher component costs into its products, warning the current memory shortage cycle could be longer and more severe than previous ones.

This follows Semiconductor Manufacturing International Corp.’s recent warning that memory chip constraints could limit car and consumer electronics output in 2026.

Last month, Xiaomi increased prices for its flagship smartphone, citing higher memory chip costs.

Rising demand for advanced memory in data centers and AI accelerators has contributed to shortages of lower-end chips, as suppliers like SK Hynix and Samsung prioritize customers such as Nvidia.

🔗 Source: Bloomberg

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Implications, context, and why it matters.

Mobile memory shortages tied to capacity shifts

Samsung and SK hynix (South Korean memory supplier) trimmed NAND flash (storage) output in H2 2025, with SK hynix cutting about 10% 1. Kioxia (Japanese flash-memory maker) and Micron (U.S. memory manufacturer) also reduced production 1. Samsung may raise 2026 contract prices by 20–30% 1.
NVIDIA’s GPU (graphics processing unit) demand consumes memory equal to 20 million smartphones, roughly one-tenth of China’s yearly shipments 2. Capital spending tilts to High Bandwidth Memory (HBM) and process upgrades over new bit supply 3. DRAM (dynamic random-access memory) contract prices in 4Q25 will jump more than 75% year over year, lifting bill of materials (BOM) costs for phones by 8–10% in 2025 and 5–7% in 2026 4.

Refurbished marketplaces and trade-in platforms gain pricing power as consumers delay upgrades

Used smartphone shipments will grow 3.2% in 2025, while new devices stay near 1% 5 6. IDC, a market research firm, projects 5.8% growth in 2026 5 6. The used market reached 282.6 million units in 2022 and is on track for 413.3 million by 2026 7.
Trade-in programs speed supply and lift secondary prices, nudging premium owners to upgrade 7. Operators of certified pre-owned programs, resellers, and logistics providers benefit 7. They handle device authentication and refurbishment. Investors may favor firms running trade-in infrastructure and warranty products 6. OEMs, or original equipment manufacturers, and mobile carriers are adjusting to capture resale value 6. The used smartphone market at $99.9 billion by 2026 marks a structural shift 7.