"Memory price hikes far exceed expectations!" Xiaomi announces phone price increase

The sharp fluctuations in memory prices are being transmitted to the terminal consumer market. Xiaomi Group announced that it will raise the suggested retail prices of some of its smartphones, with the adjustment taking effect from April 11.

Wei Siqi, General Manager of Xiaomi China Marketing Department, posted on Weibo saying that the company had been striving to suppress the impact of rising memory prices on end-product prices, "but the surge and scale of this round of memory price increases have still far exceeded expectations," emphasizing that this price adjustment is a necessary move to ensure normal supply and stable product quality.

According to information disclosed by Wei Siqi, the adjustment involves three models: REDMI K90 Pro Max, Turbo 5, and Turbo 5 Max.

The suggested retail price of REDMI K90 Pro Max will be raised by 200 yuan starting April 11; Turbo 5 and Turbo 5 Max will end the previous Spring Festival special discount, but the 512GB large-memory version will continue to be subsidized by 200 yuan.

Xiaomi stated it will try to "limit the impact of memory price increases to as few models as possible," implying that the scope of this price adjustment has already been compressed, and other models are not currently affected.

Xiaomi Group President Lu Weibing reposted Wei Siqi's Weibo and stated that the price of the same memory configuration has soared nearly four times compared to the first quarter of last year, with the 12+512GB combination increasing by about 1,500 yuan and the 16+1TB specification seeing an even more significant rise.

Cost Impact: Memory Prices Soar Nearly Four Times Year-on-Year

Lu Weibing's statement reveals how significant this round of memory price increases is. He pointed out that compared to the first quarter of last year, the price of the same memory configuration has risen close to four times, with the cost of the 12GB+512GB combination increasing by about 1,500 yuan, and the high-capacity 16GB+1TB specification’s increase as "absurd."

This cost pressure is especially pronounced for the REDMI series. The REDMI brand has long been defined by its "ultimate price-performance ratio" as a core pricing logic. With memory costs rising sharply, maintaining the original price level means profit margins will be severely squeezed, making price adjustments an unavoidable choice.

Market Impact: Price-Performance Brands Under Pressure, Consumer Perception Evident

The significance of this price increase is that the rise in memory costs has exceeded the threshold that mobile phone manufacturers can absorb.

As a leading domestic smartphone brand in terms of shipments, Xiaomi’s public announcement of price increases and detailed disclosure of cost pressure may suggest that other industry manufacturers are facing similar circumstances.

For consumers, the bargaining space for mid-to-high-end REDMI models, previously known for their price competitiveness, is narrowing. Although Xiaomi promises to minimize the scope of price adjustments, if memory prices remain at high levels, further adjustments in the future cannot be ruled out.

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