Xiaomi, a leading smartphone manufacturer, is bracing for increased costs as memory prices surge due to a shift in production priorities among chipmakers. The company’s leadership is signaling to customers that smartphone prices are likely to rise as a result.
This price escalation mirrors a trend already felt by budget PC and television manufacturers earlier this year.Memory producers are increasingly focusing on more profitable components like DDR5,GDDR7 for graphics cards,and high-bandwidth memory (HBM) crucial for artificial intelligence accelerators,reducing output of the DDR4 chips commonly used in PCs,televisions,and smartphones. Market analysis from Trendforce indicates DDR4 component prices rose 13 to 18 percent between April and the end of June. The shift in production is expected to continue impacting consumer electronics pricing in the coming months, with Xiaomi now directly acknowledging the impending cost increases for its smartphone line.
