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Xiaomi has issued a warning that the cost of smartphones may increase significantly in 2026 due to tightened chip supply. The company’s president, Lu Weibing, announced at a recent industry event that they have already secured agreements for next year but emphasized that the rising costs of memory components will inevitably affect retail prices.
The warning comes amid a sharp shift in market dynamics driven by an industry-wide shift in manufacturing priorities. High-end memory used in data centers and AI accelerators is consuming considerable capacity from global suppliers, leaving mobile-grade memory chips in short supply. Major manufacturers like SK Hynix and Samsung have reallocated resources to produce High Bandwidth Memory (HBM), a crucial component in training advanced AI models.
Nvidia’s soaring GPU demand has also contributed significantly to the shortage. Analysts estimate that the memory used for Nvidia’s latest accelerators is equivalent to what would normally power around 20 million smartphones, roughly 10% of China’s annual smartphone shipments.
The global smartphone market is already reacting to new device prices increasing. As consumers delay upgrades amid rising device costs, demand for refurbished and pre-owned phones is accelerating. According to IDC estimates, refurbished smartphone shipments will grow 3.2% in 2025 and expand by an additional 5.8% in 2026.
The used smartphone market, valued at $99.9 billion by 2026, is poised to reach more than 400 million units shipped globally. Trade-in programs, certified pre-owned platforms, and third-party refurbishment networks are becoming increasingly influential in shaping consumer upgrade cycles.
Source: coincentral.com
