Xiaomi introduced its new flagship smartphones, the Xiaomi 17 and 17 Ultra, on March 28, 2026, during the Mobile World Congress in Barcelona. These devices are part of Xiaomi’s plan to compete with heavyweight brands like Samsung and Apple in the premium market.
Despite the rising costs of memory chips, Xiaomi kept the prices of these new models the same as last year. The Xiaomi 17 starts at €999 ($1,179), while the 17 Ultra begins at €1,499. This decision comes at a time when memory prices have surged by up to 90% in early 2026, primarily due to supply shortages as chips are allocated to data centers for artificial intelligence (AI) applications. According to Counterpoint Research, these price increases could lead to a 13% rise in smartphone prices throughout the year.
Xiaomi’s strategy to hold prices steady may seem bold, but analysts caution that it may not be enough. Francisco Jeronimo from IDC notes that while premium brands like Apple and Samsung can absorb costs better due to their stronger market position, Xiaomi may struggle. Their focus has predominantly been on mid-range devices, which could see reduced demand as consumers face higher prices.
This environment poses challenges for Xiaomi. A recent Gartner report suggests that the smartphone market could decline by 12.9% in 2026, largely due to the chip shortage. Many experts believe that Xiaomi’s future may depend on whether it can adapt to these market shifts. Ben Wood from CCS Insight expects Xiaomi might have to increase prices for its mid-tier devices as well.
Interestingly, while Xiaomi’s smartphone revenue declined 3% year-on-year in the last reported quarter, its electric vehicle (EV) segment has flourished, with sales climbing nearly 200%. This shift showcases Xiaomi’s strategy to diversify its revenue streams and rely less on smartphone sales, a smart pivot during tough times.
As the tech landscape evolves, Xiaomi’s ability to navigate rising costs and better integrate its EV business could determine its long-term success. For further insights on the smartphone market and pricing trends, you may find this Gartner report helpful.
Source link
Apple Inc,Mobile phones,Smartphones,Technology,Xiaomi Corp,business news
