Memory Price Surge Raises Smartphone Costs

Xiaomi executives Lei Jun and Lu Weibing said recently that rapid AI-driven demand for memory chips has created a year-long supply shortage, sharply boosting memory prices and pressuring smartphone margins. Lei Jun said Xiaomi will try to absorb costs rather than fully pass increases to consumers, while Lu Weibing warned the price cycle could last until the end of 2027. Some brands may raise prices or drop entry-level models.