Xiaomi Stock May 18: Premium Phones Hit ¥10K as Memory Costs Surge

Xiaomi’s leadership is sounding the alarm on smartphone pricing. President Lu Weibing revealed that 01810.HK faces mounting pressure from memory chip costs, with flagship phones likely to exceed ¥10,000 in the second half of 2026. AI applications are driving server-side memory demand, but production capacity lags far behind. The company is capitalizing on this window by offering aggressive 618 promotions, with discounts reaching ¥1,500 on premium models before anticipated price increases reshape the market.

Memory Chip Crisis Drives Price Surge

Memory costs are skyrocketing due to explosive AI demand. Server-side memory requirements have surged, but chip factories require three-plus years to reach full production capacity. Lu Weibing stated that memory price inflation will persist through 2027, potentially extending into 2028.

All flagship phone pricing is now directly impacted by memory costs. High-capacity versions like 16GB+512GB and 16GB+1TB models face the steepest increases, as memory represents a larger portion of total component costs. This structural shortage creates unavoidable margin pressure across the industry.

Industry-Wide Price Hikes Accelerate

Chinese smartphone makers including OPPO, vivo, and Honor have already raised prices on select models. Xiaomi’s 618 campaign offers flagship phones at discounts up to ¥1,500, positioning this as the year’s final low-price window. Analysts expect steeper increases on upcoming launches.

Xiaomi maintains a strategic commitment to be the last manufacturer to raise prices and to minimize increases when they occur. However, even this disciplined approach cannot shield consumers from the broader supply-chain reality. The company acknowledges that manufacturers have limited control over global memory pricing trends.

618 Promotion: Last Chance for Discounts

Xiaomi’s 618 sale launched May 13 with the theme “One-Step Tech Ecosystem.” The Xiaomi 15 Ultra flagship dropped ¥1,500, while the REDMI K90 Max gaming phone received ¥300 discounts. Over 100 home appliances also participate, with savings reaching ¥4,500.

Student users gain additional ¥200 discounts after verification. Lu Weibing publicly stated that 618 represents the best purchasing window of 2026. After this promotion closes, consumers should expect sustained price increases across premium segments as memory costs continue climbing through year-end.

Market Impact and Consumer Pressure

The ¥10,000 threshold represents a psychological and financial barrier for Chinese consumers. Crossing this price point will compress demand for high-capacity flagship models, potentially shifting buyers toward mid-range devices. Xiaomi’s disciplined pricing strategy aims to preserve brand loyalty during this transition.

The memory shortage extends beyond 2026, creating a multi-year headwind for smartphone profitability. Consumers face mounting pressure to upgrade now or accept higher prices later. This dynamic makes Xiaomi’s 618 campaign a critical revenue opportunity before the market fundamentally shifts.

Final Thoughts

Xiaomi faces a critical inflection point as memory chip costs reshape smartphone economics. The company’s 618 promotion represents the final window for consumers seeking premium phones at current prices. With flagship models poised to breach ¥10,000 in H2 2026, Xiaomi’s strategy of disciplined pricing and early transparency positions it to weather the transition better than competitors. Investors should monitor whether the company can maintain margins as prices rise and demand potentially softens.

FAQs

Disclaimer:

The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.