Xiaomi Stock May 19: Premium Phones Hit ¥10K as Memory Costs Surge

Xiaomi faces mounting pressure from rising memory chip costs that could push premium smartphone prices above ¥10,000 in the second half of 2026. Company president Lu Weibing recently signaled that 01810 will likely raise prices on flagship models as storage component expenses continue climbing. The 618 shopping festival, which kicked off May 13, represents the final window for consumers to lock in lower prices before the anticipated increases. This pricing shift reflects broader industry challenges as memory manufacturers grapple with sustained cost pressures affecting the entire smartphone sector.

Memory Costs Drive Xiaomi Pricing Strategy

Rising storage component prices are forcing Chinese smartphone makers to adjust their pricing models. Memory cost increases continue impacting the industry, with Xiaomi acknowledging that price adjustments are inevitable. Lu Weibing stated that flagship devices could breach the ¥10,000 threshold as manufacturers pass through higher input costs to consumers.

The company’s current 618 promotion reflects this reality, offering aggressive discounts on premium models before the pricing inflection point arrives. Xiaomi 15 Ultra, the company’s flagship imaging device, is discounted by up to ¥1,500 during the sale. REDMI K90 Max, positioned as the gaming performance leader, receives up to ¥300 off, bringing entry pricing to ¥2,299.

618 Sale: Final Discount Window Before Price Hikes

Xiaomi’s 618 campaign emphasizes urgency, positioning this year’s event as the optimal purchasing opportunity before price increases take hold. The promotion spans multiple product categories, with tech products receiving up to ¥4,500 in total savings across home appliances and electronics.

The company is leveraging this messaging to drive volume before the anticipated cost-driven price adjustments. Student users receive additional ¥200 discounts on qualifying purchases. This aggressive promotional stance suggests management expects significant pricing power constraints in H2 2026 as memory costs stabilize at elevated levels.

Industry-Wide Pricing Pressure Takes Hold

The memory cost surge affects the entire Chinese smartphone ecosystem, not just Xiaomi. Multiple domestic brands have already begun adjusting prices on existing and new models in response to component inflation. The industry consensus points to H2 2026 as the inflection point when price increases become unavoidable.

Xiaomi’s proactive messaging about premium phone pricing above ¥10,000 signals confidence in brand positioning and pricing power. The company believes consumers will accept higher prices for flagship features, particularly in imaging and gaming performance segments where Xiaomi maintains competitive advantages.

Final Thoughts

Xiaomi’s acknowledgment of impending price increases reflects structural cost pressures affecting the entire smartphone industry. The 618 sale represents a strategic opportunity to maximize volume before H2 2026 pricing adjustments take effect. Investors should monitor whether the company successfully maintains margins as memory costs remain elevated, and whether premium pricing above ¥10,000 gains consumer acceptance in competitive markets.

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