Xiaomi has shared its Q3 2025 financial report, and the numbers look strong. The company posted solid revenue and wider profit margins, which shows that demand for its products remains steady. Despite the positive update, a more serious issue was revealed. Xiaomi President Lu Weibing has warned that affordable smartphones are becoming scarce. He made it clear that prices in 2026 will rise sharply due to significant pressure on key components used in modern phones.
Xiaomi: Component shortages are pushing prices higher
During a recent briefing, Lu Weibing explained that the next generation of smartphones will come with higher price tags due to rapidly rising component costs. He said the company will have no choice but to respond to these rising costs by increasing the final selling price. His warning comes at a time when the tech industry is dealing with a deep shortage of memory chips.
The rapid growth of artificial intelligence systems mainly causes this shortage. Large data centres need vast amounts of memory to run AI tools, train models, and provide cloud services. These systems now use memory chips at levels never seen before. As a result, the supply that usually goes to smartphone makers has been reduced. Most chips are being taken up by AI companies, leaving very little for mobile brands.
Memory prices are climbing
Samsung recently changed its memory pricing structure and raised prices by nearly sixty per cent. This jump is already affecting high-end phones in India. New models like the OnePlus 15 and the Oppo Find X9 series entered the market at prices at least 10,000 rupees higher than their predecessors. Even upcoming models such as the iQOO 15 and the Vivo X300 series are expected to cost more when they launch.
Xiaomi’s own future lineup, which includes the Xiaomi 17, 17 Pro and 17 Pro Max, still does not have an India launch date. Early reports suggest these phones may arrive in early 2026. If the current pressure on the supply chain continues, these models will likely come with higher prices that reflect the rising cost of parts.
Buyers should prepare for higher budgets
For anyone planning to upgrade in 2026 or later, the message is direct. Expect to spend more if you want the latest hardware. The chip shortage is not limited to smartphones. Many experts believe this problem will also affect laptops, PC accessories and other related devices.
In short, the global push for AI is pulling essential components away from smartphone production. This rising demand leaves phone makers competing for limited stock, driving up manufacturing costs. Since companies cannot absorb these costs forever, customers will eventually feel the impact.
If you have been thinking about a new phone, you should buy it sooner rather than later. By 2026, smartphone prices could reach unprecedented levels for many users.
