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Xiaomi Locks In 2026 Memory Supply as It Warns of Higher Smartphone Prices

AI server demand is diverting capacity to high bandwidth memory that raises phone component costs.

Overview

  • President Lu Weibing said consumers should expect a sizeable rise in smartphone retail prices next year.
  • Xiaomi has signed a dedicated contract to secure adequate memory chip supplies for all of 2026, with the supplier undisclosed.
  • The company expects steep procurement costs and plans to offset part of the burden through price increases.
  • Lu cited a long upcycle driven primarily by AI-related demand for HBM, as memory makers prioritize data centers over phones.
  • Analyst reporting indicates NVIDIA’s shift to LPDDR in AI servers could further tighten supply and push server-memory prices higher into late 2026.