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Xiaomi Warns of Higher 2026 Phone Prices as Memory Costs Soar, Secures Supply

Nvidia’s pivot to LPDDR for AI servers is set to tighten mobile‑grade memory further.

Overview

  • Xiaomi president Lu Weibing said consumers should expect sizeable retail price increases next year, adding that price hikes will not fully absorb elevated memory costs.
  • Xiaomi disclosed it has signed a dedicated contract to ensure adequate memory chip supply for 2026, reflecting a strategy to navigate prolonged cost pressure.
  • Analysts at Counterpoint say DRAM prices are set to keep climbing into 2026 and project server‑memory costs could double by late 2026 as supply shifts to AI workloads.
  • Nvidia’s move from DDR5 to LPDDR in AI platforms is expected to strain smartphone‑class memory supply, increasing competition for LPDDR4/LPDDR5X and lifting device bills of materials.
  • Suppliers have prioritized HBM and high‑end server DRAM and trimmed output of legacy parts, and companies such as Lenovo are locking long‑term memory deals as prices rise.