Your Next Xiaomi, Redmi, & POCO Will Be More Expensive

Xiaomi has officially announced that smartphone prices will rise in 2026, affecting upcoming Xiaomi, Redmi, and POCO models. The company’s leadership has revealed that the global supply chain is entering one of the most challenging periods in recent years—primarily due to a major shortage of memory chips.

This shortage has forced Xiaomi to take unusual steps. To avoid facing a supply crisis next year, Xiaomi signed a massive advance contract to secure enough memory modules for all 2026 product lines. While this guarantees uninterrupted production, the cost of this “insurance” is extremely high. As a result, Xiaomi has already warned that production costs are increasing, and retail prices will inevitably rise for consumers.

What’s Causing the Price Increase?

1. AI Boom Is Absorbing Most Memory Supply

The global explosion of AI data centers is the biggest reason behind the memory shortage. Companies building AI infrastructure need High Bandwidth Memory (HBM) and advanced DRAM at an unprecedented scale. Because of this surge, major memory manufacturers—like Samsung, SK Hynix and Micron—are redirecting production capacity from regular mobile memory to high-performance AI memory.

This shift leaves smartphone manufacturers like Xiaomi with less supply and higher prices for the standard DRAM and NAND chips used in phones.

2. Memory Prices Are Rising Faster Than Expected

Both DRAM and NAND prices have been rising throughout 2025 and are projected to spike again in early 2026. Since memory is one of the most expensive components inside a smartphone, even a small increase significantly impacts the final device price.

3. Limited Production Expansion

Chipmakers are intentionally keeping production tight to maintain profitability and avoid market oversupply. This means the supply crunch won’t ease anytime soon—putting additional cost pressure on smartphone brands.

What This Means for Xiaomi, Redmi & POCO Buyers

• Expect noticeable price increases across all segments in 2026—budget, mid-range, and flagship.
• Budget phones may receive spec downgrades (less RAM/storage) if companies try to keep prices under control.
• In countries like India where price sensitivity is high, users may shift to older models or delay upgrades.
• If you planned to upgrade, 2025 might be the better year before prices jump further.
• POCO’s “value-for-money” positioning might also shift slightly due to rising component costs.

Should You Buy Now or Wait?

If you are planning an upgrade in the next 6–12 months, it’s important to consider the timing. Since the price hikes are expected mainly from 2026 onward, users may benefit from buying:

• late-2025 models,
• current-generation Xiaomi/Redmi/POCO phones,
• or discounted previous-year models.

For tech enthusiasts and content creators, this shift opens up an important discussion: whether rising component costs will reshape the budget smartphone market, and how brands like Xiaomi will adjust their strategies.