If you’re putting off buying a new smartphone, hoping prices will drop, we’ve got news that might make you reconsider your plan. Xiaomi, one of the most important technology giants in the world, has just issued a warning that will affect the entire industry: Get ready to shell out more money for a smartphone in 2026.
The alarm arose during the presentation of Xiaomi’s financial results for the third quarter. Lu Weibing, president of the company, painted a clear and inspiring picture for the year ahead.
He explained that global prices of memory chipfundamental component of any mobile device, are on an unstoppable upward trajectory. But, What is this increase due to? The answer has a name: artificial intelligence.
Memory chips will increase in price and so will mobile phones
We are experiencing a real boom in artificial intelligence and its thirst for resources is insatiable. Memory chip makers, such as Samsung, are directing their efforts and production lines towards prioritize a much more profitable market right now: data centers.
These massive server farms are at the heart of the generative artificial intelligence and language models that are revolutionizing technology. The point is this they require colossal amounts of high-end memory.
Such a shift in production focus means just that there will be fewer chips available for the smartphone sector. As we well know, the law of supply and demand is relentless: less supply translates into stable demand higher prices.
Xiaomi will not be saved from this, so we’ll see considerable increases (probably) in the successors of models like the Xiaomi 17 or the Xiaomi 15T.
Lu Weibing’s words leave no room for doubt. “What I expect is that the pressure will be much greater next year than this year. Overall, it’s likely consumers see a significant increase in prices resellers of the products,” said Lu. This statement is crucial because it comes from a company known for offering excellent value for money.
The executive added an important nuance, underlining that “some of the pressure may have to be addressed through price increases, but increases alone will not be sufficient to absorb it”. This suggests that manufacturers will be faced with the difficult dilemma of pass on part of the cost to the consumer as they look for internal ways to absorb the blow, possibly impacting their profit margins.
The relentless upward trend in smartphone prices will not stop, nor will it reverse, it won’t slow down in 2026 either. Every device, from entry-level ones to the most exclusive flagships, probably you will see an increase in your price.
Of course this is a prediction, but when a key player like Xiaomi speaks, it is wise to listen. Just look back and Let’s compare the cost of a cell phone today with that of a few years ago to understand that this warning has a solid foundation. The future of mobile technology promises to be smarter and more powerful but, at least in the short term, it will also be more expensive.
Source | GSM Arena
