Beijing, China – Chinese company Xiaomi has warned that smartphone prices could see a further increase next year due to the rising cost of memory chips.
She pointed out that this price increase will not cover the full escalating costs.
Memory chip prices
Xiaomi CEO Lu Lijun explained that the rise in global memory chip prices
This is due to the high demand for memory units used in artificial intelligence servers.
As companies race to build massive data centers,
This has led to a narrowing of the supply of chips intended
for smartphones and other electronic devices.
The report, published by Reuters, indicated that chip manufacturers such as Samsung
It directed its capabilities towards producing high-bandwidth memory (HBM).
And reducing production of chips used in mobile phones,
This contributed to an increase in prices at the global market level.
Continuous growth
In terms of financial performance, Xiaomi showed continued growth
during the third quarter of this year.
Smartphone shipments reached 43.3 million units globally, a slight increase of 0.5%.
The group’s revenues also increased by 22.3%, supported
by electric vehicle and artificial intelligence projects.
This reflects the company’s ability to expand despite economic challenges.
Potential increase
Xiaomi confirmed that it is exploring multiple strategies to cope with rising costs.
This is without significantly affecting its competitiveness in the market.
Meanwhile, consumers are closely watching for any potential price
increases for the company’s phones in the coming months.
An unprecedented increase
These warnings come at a time when the technology industry is experiencing
an unprecedented increase in the prices of key components.
This puts pressure on global smartphone companies.
This reflects the impact of rising demand for artificial intelligence
and data centers on consumer markets.
These developments confirm that the rising cost of global memory chips has
become an influential factor in determining the prices of electronic devices.
This includes smartphones, and requires close monitoring
by consumers and decision-makers in the technology sector.
