Author：Wall Street CN
The dramatic fluctuations in memory prices are impacting the end-consumer market. Xiaomi Group announced that it will raise the suggested retail price of some of its currently available smartphone models, effective April 11.
Wei Siqi, General Manager of Xiaomi China Marketing Department, posted on Weibo that the company had been working hard to curb the impact of memory price increases on terminal prices, "but the rise and magnitude of this round of memory price increases still far exceeded expectations." She emphasized that this price adjustment was a necessary measure to ensure normal product supply and stable quality.
According to information disclosed by Wei Siqi, this involves three models: REDMI K90 Pro Max, Turbo 5, and Turbo 5 Max.
The suggested retail price of the REDMI K90 Pro Max will be increased by 200 yuan starting April 11; the previous Lunar New Year special offers for the Turbo 5 and Turbo 5 Max have been cancelled, but the 512GB version with large memory will continue to receive a 200 yuan subsidy.
Xiaomi stated that it will try its best to "control the impact of memory price increases to as few models as possible," implying that the scope of this price adjustment has been narrowed and other models will not be affected for the time being.
Xiaomi Group President Lu Weibing retweeted Wei Siqi's Weibo post and stated that the price of the same version of memory 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 increase.
Cost shock: Memory prices surge nearly fourfold year-on-year
Lu Weibing's statement revealed the magnitude of this round of memory price increases. He pointed out that compared with the first quarter of last year, the price of the same version of memory has increased by nearly four times. The cost of the 12GB+512GB combination has increased by about 1,500 yuan, while the price increase of the high-capacity 16GB+1TB specification is "outrageous".
This cost pressure has had a particularly significant impact on the REDMI series. The REDMI brand has long used "extreme cost-effectiveness" as its core pricing logic. With the sharp rise in memory costs, maintaining the original price range means that profit margins will be significantly eroded, making price adjustments an unavoidable choice.
Market impact: Brands offering value for money are under pressure, which is clearly felt by consumers.
The significance of this price increase lies in the fact that the rise in memory costs has exceeded the threshold of what mobile phone manufacturers can absorb.
Xiaomi, as a leading smartphone brand in China in terms of shipments, has publicly announced a price increase and disclosed detailed cost pressures, which may indicate that other manufacturers in the industry are facing similar situations.
For consumers, the room for negotiation on mid-to-high-end REDMI models, which previously excelled in price competitiveness, has narrowed. Although Xiaomi has promised to keep price adjustments to a minimum, further adjustments cannot be ruled out if memory prices remain high.
