Why Xiaomi phones are getting more and more expensive

The newly launched Redmi K90 is disappointing due to its price increase. Photo: Xiaomi .

On October 24, a Xiaomi representative admitted that the company is being affected by the skyrocketing price of memory chips. This increases the cost of phone production. The selling price of the newly launched Redmi K90 series of this brand has disappointed fans because of the significant increase in selling price.

"The pressure on production costs has affected the selling prices of new products. The cost of purchasing memory chips has increased far beyond expectations and may continue to escalate," Chairman Lu Weibing wrote on Weibo.

Xiaomi launched the Redmi K90 series on October 23. The base model with 12 GB RAM and 256 GB internal storage starts at 2,600 yuan ( $364 ). This is higher than the previous K80 version (2,500 yuan) that was launched in November 2024.

Mr. Lu acknowledged consumer frustration with the price difference. Xiaomi executives said the company would cut 300 yuan from its best-selling K90 model (12 GB/512 GB). The new price is 2,900 yuan, effective in the first month of release.

The global AI chip rush has squeezed supplies of traditional chips, which power phones, personal computers and servers. Chip costs have soared, boosting profits for NAND and DRAM makers. Winners include South Korea’s Samsung Electronics and SK Hynix.

This year’s K90 Pro gets a major upgrade. In addition to a top-of-the-line chip and vapor chamber cooling for gaming, it also has its own subwoofer, tuned by Bose. However, the model is unlikely to be distributed internationally.

Increasing product prices is not a new story for Xiaomi. The process of upgrading users and bringing them to high-end segments is carried out gradually by the company every year. Just in the Xiaomi 15 generation, CEO Lei Jun affirmed that it is inevitable that users have to pay more for flagships when chip prices are increased. With this year's K90 version, the problem is explained by the memory chip.

According to statistics, Xiaomi's high-end phone prices have increased more than Apple's, which is considered a "blood-sucking" brand with exorbitant listing prices. This comes from the Chinese brand's initial positioning, which focuses on the low-end customer group. The company is famous for its high-configuration, low-cost phones.

CEO Lei Jun also once affirmed that the company only takes 5% of the profit on each product. The surplus will be reinvested to serve users. Recently, this company has expanded into home appliances, burning money for electric cars. This has helped Xiaomi's stock price increase. At some point, Lei Jun rose to the position of richest person in China.

Source: https://znews.vn/ly-do-dien-thoai-xiaomi-ngay-cang-dat-post1596608.html