Xiaomi Faces Rising Costs as Memory Chip Prices Drive Up Smartphone Prices

Xiaomis rising production costs, driven by surging semiconductor memory prices, have led to disappointing pricing for its new Redmi K90 smartphone series, raising concerns about market competitiveness.

• Xiaomis President Lu Weibing announced that costs for producing smartphones have surged due to rising semiconductor memory prices, affecting the pricing of their new products.
• The newly launched Redmi K90 series was introduced on Thursday, but its pricing disappointed the market, as cost pressures intensified beyond expectations.
• As the cost of memory chips continues to rise, Xiaomis pricing strategy may be impacted, which could lead to increased prices in Renminbi for future smartphone models.