Xiaomi Says Surging Memory Chip Prices Push Up Smartphone Costs

Upgraded 24 October 2025 at 11:10 IST

Xiaomi verifies the expense of its brand-new Redmi K90 series smart devices increased due to rising memory chip rates, driven by the international rush for AI chips. Xiaomi President Lu Weibing dealt with market dissatisfaction by revealing a rate cut for a crucial K90 design, highlighting the magnifying expense pressure

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Xiaomi states rising memory chip rates rise mobile phone expenses|Image: Reuters

Chinese smart device producer Xiaomi on Friday stated rising memory chip costs have actually raised the expense of making handsets, after rates of its brand-new Redmi K90 series drew market dissatisfaction.

“Cost pressure has transferred to the pricing of our new products,” President Lu Weibing composed on Weibo. “Rising costs of memory chips are far beyond expectations and could intensify.”

Xiaomi released its entry-level Redmi K90 on Thursday with the base design, geared up with 12 GB of memory and 256 GB of storage, priced from 2,599 yuan($364). That compared to 2,499 yuan for the base design of the predecessor K80 series released in November 2024.

Lu kept in mind customer dissatisfaction about rate spaces in between setups. He stated Xiaomi will reduce the rate of the most sought-after K90 design – with 12 GB memory and 512 GB storage – by 300 yuan to 2,899 yuan for the very first month of sales.

An international rush for chips for usage in expert system applications has actually tightened up the supply of standard chips utilized in smart devices, desktop computers and servers, greatly increasing their expense and enhancing profits for makers of NAND and DRAM such as South Korean duo Samsung Electronics and SK Hynix. ($1 = 7.1230 Chinese yuan renminbi)