Xiaomi responds to memory price increase: will accelerate industry restructuring and does not rule out future product price hikes

K-LinePoet · 2026-03-28T17:58:22+00:00

At the performance meeting on March 24th, Lu Weibing, head of Xiaomi Group, stated that the current round of memory price increases is happening at a faster pace and greater intensity than the company originally anticipated, posing a significant challenge to Xiaomi's operations. The lower the proportion of memory costs in the overall product, the less impact it has on the product. Xiaomi's "full ecosystem of smartphones, vehicles, and home" is moving toward balance, allowing the company to better cope with memory price hikes. Additionally, the more high-end the smartphones are, the less impact the price increase will have. As Xiaomi advances its high-end strategy, it can respond better than competitors. Therefore, although the pressure is substantial, Xiaomi will fare relatively better; if the situation becomes unsustainable in the future, Xiaomi may also consider raising prices. Lu Weibing believes that more attention should be paid to what happens after the price increase cycle. He predicts it will intensify reshaping of the industry landscape—some companies may even be eliminated, while others will be pushed to innovate more. (Financial Associated Press)

K-LinePoet

2026-03-28 17:58:22

On March 24, during the performance meeting, Xiaomi Group head Lu Weibing stated that the speed and intensity of the current memory price increase were higher than the company had originally anticipated, posing a significant challenge for Xiaomi’s operations. The lower the proportion of memory costs in the overall product, the smaller the impact on the product. Xiaomi’s “full ecosystem of people, vehicles, and homes” moving towards balance allows the company to respond better to memory price hikes. At the same time, the higher-end the smartphone, the smaller the impact will be. With the advancement of Xiaomi’s high-end strategy, the company can cope better than its competitors. Therefore, although the pressure is substantial, Xiaomi will fare relatively better; if the future becomes unsustainable, it is not ruled out that Xiaomi may also consider raising prices. Lu Weibing believes that more attention should be paid to what will happen after the price increase cycle. He predicts that it will intensify the reshaping of the industry landscape; on one hand, some companies may even be eliminated; on the other hand, it will compel companies to innovate more. (Financial Associated Press)

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