Xiaomi CEO Warns of Rising Phone Prices, Urges Consumers to Buy Soon

Xiaomi CEO Lei Jun has warned consumers not to delay purchasing new smartphones, predicting that prices could rise significantly in the coming years.

His statement was made during the launch event for the Xiaomi 17 Max on Thursday, 21 May 2026. He advised annual phone upgrade users to consider buying sooner rather than later.

This is due to rising costs of smartphone components, particularly memory (RAM) and storage chips, across the industry.

Jun stated that the surge in memory and storage chip prices is now directly impacting electronic device production costs, including smartphones.

Despite this, Xiaomi claims it is still striving to prevent the cost increases from heavily burdening consumers, through supply chain efficiencies and internal technology optimisation.

However, if component prices continue to rise, maintaining stable smartphone prices will become increasingly challenging.

Jun noted that memory chip prices are expected to keep rising for at least the next two years, until around 2028.

Xiaomi was among the first brands to publicly warn about rising memory prices since 2025, Jun added.

Should the situation persist, gadget manufacturers, including Xiaomi, may struggle more to keep device prices stable in the market.

Xiaomi Group President Lu Weibing echoed similar concerns in a recent public livestream.

Weibing estimated that premium flagship smartphones from Chinese gadget vendors could reach 10,000 yuan (approximately £1,100) by year-end.

He cited sustained high costs from upstream suppliers as making it harder for smartphone makers to maintain stable pricing.

The impact is already evident in China’s market, with several smartphone models reporting price hikes of 200 to 400 yuan (£22 to £44) since March 2026, according to KompasTekno’s compilation from Gizmochina.