Xiaomi launched the Xiaomi 17 Ultra on March 28. 2026 at the Mobile World Congress in Barcelona.
Xiaomi
Xiaomi It launched its latest flagship smartphones globally on Saturday as an unprecedented rise in memory chip prices threatens to dampen sales.
The Xiaomi 17 and 17 Ultra represent the Chinese tech giant’s top-tier devices and aim to challenge Samsung. Apple In the high-end segment of the market.
Xiaomi, the third-largest smartphone player globally, has kept prices of devices relatively low compared to last year’s flagship, despite a huge jump in memory prices that are critical to smartphones. The Xiaomi 17 starts at 999 euros ($1,179) while the Xiaomi 17 Ultra starts at 1,499 euros.
In the first quarter of the year so far, memory prices have soared between 80% and 90%, Counterpoint Research said. This surge is driving supply towards data centers for AI due to a shortage of memory chips.
Memory is an expensive component in a smartphone. According to a Gartner forecast from February, smartphone prices could increase by 13% in 2026. IDC forecasts that the smartphone market will decline by 12.9% in 2026 as a result of the chip crunch.
Analysts suggest that companies that sell more expensive phones are more insulated and able to absorb the cost.
Most of Xiaomi’s volume comes from mid-range devices, which could take a hit to demand from any price hike. Its superior devices are unlikely to compensate for any losses.
“This year will be even worse because Xiaomi doesn’t have a strong premium share which means it can’t rely on the premium segment to offset lower margins in other devices like Apple and Samsung,” Francisco Geronimo, vice president of data and analytics at IDC, told CNBC.
In November, Xiaomi management warned that the industry is likely to increase smartphone prices in 2026.
Ben Wood, chief analyst at CCS Insight, said Xiaomi is likely to increase the prices of its low-mid-range devices.
While Xiaomi still makes high-revenue consumer electronics, the company is growing its electric vehicle business in China, which now accounts for a quarter of all sales. It is an important source of income in the midst of dementia.
Xiaomi reported a 3% year-over-year decline in smartphone revenue in the September quarter, the last financial figures available publicly. But sales in its electric car business are up nearly 200%.
