Another major Android phone maker caves to soaring RAM costs with price hikes

The RAM crisis is starting to hit smartphone prices hard, and Xiaomi is the latest major Android phone maker to cave to rising component costs.

The company has announced price increases for several smartphones and tablets, with some devices getting a hefty ¥20,000 (~$137) increase. Xiaomi says soaring memory prices and other rising product costs have become too difficult for the company to absorb.

The announcement came on Xiaomi Japan’s X account, though we do expect the company to follow similar price hikes in other markets as well.

The increases will affect the Xiaomi 17T Pro and several POCO X8 Pro and X8 Pro Max configurations. Xiaomi’s 17T Pro with 12GB of RAM and 256GB of storage will rise from ¥119,800 (~$754) to ¥139,800 (~$879), while the 12GB/512GB version will jump from ¥139,800 (~$879) to ¥159,800 (~$1,005).

The POCO models are facing similarly steep increases. The POCO X8 Pro Max 12GB/256GB will go from ¥79,980 (~$545) to ¥99,980 (~$681), while the 12GB/512GB model will increase from ¥89,980 (~$613) to ¥109,980 (~$749).

Several other POCO X8 Pro configurations will also rise by ¥20,000 (~$125). Xiaomi’s tablets are seeing smaller increases, ranging from ¥2,000 (~$12) to ¥10,000 (~$62).

The increases will take effect from September 1 for Xiaomi and Redmi products, while the affected POCO models will see their new prices take effect from September 4.

Why is Xiaomi hiking prices, and what does this mean for future phones?

Xiaomi says it had previously absorbed higher costs to keep its products affordable, but the latest cost increase has reached a point where that is no longer sustainable. The company specifically points to memory prices as one of the factors behind the price hike.

The move puts Xiaomi in line with the broader trend in the Android smartphone industry toward higher prices. Even Apple isn’t immune and is expected to hike iPhone prices for the new models launching next month.

According to Reuters, Xiaomi’s smartphone business was already feeling the impact of higher memory and component costs in the second quarter of 2026. Smartphone revenue fell 7.5% year over year, while shipments plunged 26%.

Counterpoint Research previously reported that smartphone sales in China fell 13% during the 618 shopping festival as manufacturers raised prices and reduced discounts to offset higher memory costs.

The squeeze is particularly significant for Android phone makers like Xiaomi because memory is a major component cost, and Chinese manufacturers have historically priced their devices aggressively to compete in the mid-range and budget segments. Passing those costs on to consumers would make these phones more expensive at a time when demand is already dwindling.

Interestingly, Xiaomi says it’s trying to soften the blow for its next smartphone launch. The company says the new phone coming next week will be priced with “maximum consideration” to make it easier for fans to buy. Xiaomi Japan hasn’t officially confirmed the model yet, although Xiaomi has certain announcements planned for IFA next week.