Xiaomi has confirmed that soaring memory chip costs are forcing price increases across its smartphone lineup, with the newly launched Redmi K90 series showing immediate 4% price hikes as global memory shortages intensify.
The Chinese smartphone giant acknowledged that "cost pressure has transferred to the pricing of our new products" after the Redmi K90's launch prices drew consumer disappointment. Company president Lu Weibing stated that memory chip price increases have "far exceeded expectations and could intensify," signaling broader price increases across the smartphone industry throughout 2025 .
Immediate Impacts:
- Redmi K90 base model price increased 4% to 2,599 yuan ($364) from previous generation
- Global DRAM prices jumped nearly 20% in 2025, with further increases expected
- LPDDR5X memory delivery times extended to 26-39 weeks, creating supply chain bottlenecks
- Xiaomi forced to offer temporary discounts on K90 models after consumer backlash
- Industry-wide smartphone price increases expected throughout 2025-2026
Redmi K90 Price Increases
| Model | Redmi K80 Price (2024) | Redmi K90 Price (2025) | Price Increase | Configuration |
|---|---|---|---|---|
| Standard Edition | 2,499 yuan | 2,599 yuan | +100 yuan (+4%) | 12GB + 256GB |
| Premium Edition | 3,099 yuan | 3,199 yuan | +100 yuan (+3.2%) | 12GB + 512GB |
| After Discount | N/A | 2,899 yuan | -300 yuan | 12GB + 512GB (1-month promo) |
The price difference between storage configurations became particularly controversial, with a 600 yuan gap between 256GB and 512GB models sparking user debate. Xiaomi quickly responded by offering a 300 yuan discount on the 12GB+512GB model for the first month of sales, bringing the price down to 2,899 yuan .
Global Memory Market Conditions
The smartphone industry faces a perfect storm of supply constraints and rising demand that's driving memory chip prices to unprecedented levels. Major memory suppliers including Samsung, SK hynix, and Micron plan further price increases of up to 30% in Q4 2025, creating intense pressure throughout the consumer electronics supply chain .
AI Server Demand
Explosive growth in AI infrastructure consuming memory production capacity
Production Cuts
Major NAND manufacturers implemented 10-15% production cuts in H1 2025
Lead Time Crisis
LPDDR5X memory now taking 26-39 weeks for delivery, orders placed today may not arrive until mid-2026
"We cannot change the trend of global supply chains, and the rise in storage costs is much higher than expected and will continue to increase. Cost pressure has transferred to the pricing of our new products."
Xiaomi's Response and Strategy
Facing immediate consumer backlash, Xiaomi implemented a rapid response strategy that highlights the delicate balance between rising costs and market competitiveness. The company's quick reversal on pricing for the most popular K90 model demonstrates the challenging environment smartphone manufacturers now operate within.
Immediate Actions
Within days of the Redmi K90 launch, Xiaomi announced a 300 yuan price cut on the 12GB+512GB model for the first month of sales. This temporary discount brought the price down to 2,899 yuan, still 300 yuan above the discounted rate but more palatable to consumers .
Long-term Challenges
Lu Weibing noted that the memory cost increases affect not only launch pricing but also the entire product lifecycle, including major promotional periods. This suggests that even discounted prices during sales events may be higher than historical norms .
Broader Industry Impact
The memory price surge isn't limited to Xiaomi. Multiple Chinese smartphone manufacturers are facing similar pressures, with different brands adopting varied strategies to manage cost increases while maintaining market share.
Competitor Responses:
- vivo: X300 series prices increased by 100-300 yuan
- OPPO: Find X9 series increased by 200-300 yuan
- Realme: GT8 series jumped by 300-500 yuan
- iQOO: 15 series starting price climbed from 3,999 to 4,199 yuan
Analysts note that mid- and low-end smartphones are especially sensitive to these cost swings, as memory represents a larger percentage of total device costs in budget segments .
Market Analysis and Outlook
Industry analysts warn that the current memory supercycle shows no signs of abating, with tight supply of legacy products like DDR4 particularly affecting the smartphone industry. The situation is compounded by the industry's transition to more advanced process nodes, which brings improved performance but significantly higher wafer costs .
Inventory Concerns
According to Jefferies analysis, China's Android smartphone manufacturers face growing inventory concerns despite increased shipments. Inventory days showed no improvement on a six-month rolling basis at the end of July, suggesting potential margin pressure as companies struggle to pass along full cost increases to consumers .
Consumer Impact
With global DRAM and NAND contract prices increasing 15-20% in the fourth quarter of 2025 alone, consumers should expect higher prices across all smartphone segments. The traditional year-over-year price stability in the smartphone market appears to be ending as manufacturers can no longer absorb these substantial cost increases .
