Xiaomi 17 and 17 Ultra launched amid memory chip shortage

xiaomi The company launched its latest flagship smartphone globally on Saturday, as an unprecedented jump in memory chip prices threatens to reduce sales.

Xiaomi 17 and 17 Ultra are from Samsung and apple In the high end segment of the market.

Xiaomi, the world’s third-largest smartphone player, has maintained the price of its devices compared to last year’s flagships even amid a significant jump in memory prices, which are critical for smartphones. Xiaomi 17 prices start from 999 euros ($1,179), while Xiaomi 17 Ultra prices start from 1,499 euros.

So far in the first quarter of this year, memory prices have increased by 80% to 90%, according to Counterpoint Research. This surge is being driven by a shortage of memory chips, with supplies being directed to data centers for AI.

Memory is an expensive component in smartphones. According to Gartner’s February forecast, smartphone prices could rise by 13% in 2026. IDC predicts that the smartphone market will decline by 12.9% in 2026 due to chip demand.

Analysts suggest that companies selling more expensive phones will be more insulated and able to absorb costs.

The bulk of Xiaomi’s sales come from mid-range devices, a category where rising prices could hurt demand. However, it is unlikely that its high-end devices will be able to offset the losses.

Francisco Geronimo, vice president of data and analytics at IDC, told CNBC: “It’s going to be even worse this year because Xiaomi doesn’t have a very high premium share. So they can’t rely on the premium segment to account for low margins on other devices like Apple and Samsung can.”

Xiaomi management warned in November that the industry would likely have to raise smartphone prices in 2026.

Ben Wood, principal analyst at CCS Insight, said Xiaomi will need to raise prices for low-to-mid-tier devices.

While Xiaomi still makes most of its revenue from consumer electronics, the company has ramped up its electric vehicle business in China, which now accounts for about a quarter of its total sales. This has become an important source of income in a time of memory deficit.

Xiaomi reported a 3% year-on-year decline in smartphone sales in the September quarter, its last published financial figures. However, sales in the electric vehicle business increased by nearly 200%.