Another major Android phone maker caves to soaring RAM costs with price hikes
Effective September 1 for Xiaomi and Redmi, and September 4 for POCO, the 12 GB/256 GB version of the 17T Pro jumps from ¥119,800 to ¥139,800, while the 12 GB/512 GB model climbs to ¥159,800. POCO’s X8 Pro Max 12 GB/256 GB configuration rises from ¥79,980 to ¥99,980, and the 12 GB/512 GB tier moves to ¥109,980. Tablet price adjustments are modest, ranging between ¥2,000 and ¥10,000. Xiaomi attributes the hikes to “soaring memory prices” that can no longer be absorbed, a claim corroborated by Reuters data showing a 7.5 % YoY drop in smartphone revenue and a 26 % plunge in shipments in Q2 2026. The company’s admission signals that the cost pressure has moved beyond a temporary squeeze and is now a structural issue for its product line‑up.
The move follows a pattern observed across Chinese Android OEMs, where aggressive pricing has historically underpinned market share in the mid‑range segment. Counterpoint Research noted a 13 % decline in Chinese smartphone sales during the 618 shopping festival, directly linked to manufacturers lifting prices and trimming discounts to offset memory cost spikes. As DRAM suppliers struggle with capacity constraints and elevated wafer prices, the component’s share of a handset’s bill‑of‑materials has risen sharply, eroding the margin cushion that brands like Xiaomi relied on. This price pass‑through could accelerate a shift among price‑sensitive consumers toward lower‑cost alternatives, older stock, or even rival ecosystems that can better manage component sourcing.
Looking ahead, Xiaomi’s promise to price its next flagship “with maximum consideration” suggests a tactical retreat to preserve demand ahead of the IFA showcase, but the company may have to re‑engineer its bill‑of materials or negotiate longer‑term memory contracts to avoid further hikes. Watch for whether the new device’s pricing truly deviates from the recent trend, and monitor how competitors such as Oppo, Vivo, and real‑me respond—whether they absorb costs, shift to lower‑RAM configurations, or accelerate the rollout of in‑house chip solutions. The durability of Xiaomi’s sales recovery will hinge on the speed at which the DRAM market stabilises and the brand’s ability to balance premium pricing with its historically value‑driven image.
Key Takeaways
Xiaomi’s flagship 17T Pro and POCO X8 Pro models see price increases of up to ¥20,000, the steepest adjustments among its recent lineup.
The hikes follow a Q2 2026 revenue decline of 7.5 % and a 26 % shipment drop, underscoring the financial strain of rising DRAM costs.
Chinese Android OEMs are collectively feeling a 13 % sales dip during the 618 festival as they pass memory price pressures to consumers.
Xiaomi’s upcoming flagship will be priced with “maximum consideration,” but the company must address component cost volatility to sustain its value‑centric market position.
About the Source
This analysis is based on reporting by Android Authority. Here is a short excerpt for context:
Xiaomi says it can no longer manintain competitive prices for some of its models thanks to the memory crunch.Read the original at Android Authority
