Buying a new smartphone in 2026 will likely hit your wallet harder.
Lu Weibing, the President of Chinese tech giant Xiaomi, issued the warning while discussing the company’s most recent financial report. He explained that a major component cost is increasing dramatically.
The surge is driven by the high demand for memory chips used in artificial intelligence systems. Chip manufacturers are focusing their efforts on producing advanced memory for AI data centers, which is more profitable than making chips for mobile devices.
This shift in production is creating a shortage and driving up costs for smartphone makers. Lu Weibing stated that the financial strain on the industry will be even more severe next year than it has been in 2025.
He predicts that shoppers will “see a sizeable rise in product retail prices.” While some of this cost will be passed on to consumers, he admitted that simply raising phone prices will not completely solve the problem for manufacturers.
The expected price increases will affect all types of devices. Both inexpensive budget models and premium flagship phones are expected to become more expensive throughout 2026.
Source: Reuters