Xiaomi Stock: Flagship Phones Launch as Memory Prices Surge 80–90%

TLDR

• Xiaomi launched the Xiaomi 17 and 17 Ultra globally at Mobile World Congress, priced at 999 euros and 1,499 euros respectively
• Memory chip prices have surged 80–90% in Q1 2026, driven by AI data center demand pulling supply away from smartphones
• IDC forecasts the global smartphone market to decline 12.9% in 2026 due to the chip crunch
• Xiaomi is more exposed than rivals Apple and Samsung because it lacks a strong premium device base to absorb rising costs
• Xiaomi’s EV business surged nearly 200% in its last reported quarter, helping offset a 3% drop in smartphone revenue

Xiaomi launched its Xiaomi 17 and 17 Ultra flagships globally on Saturday at Mobile World Congress in Barcelona.

The Xiaomi 17 starts at 999 euros ($1,179) and the Xiaomi 17 Ultra at 1,499 euros. Both are priced the same as last year’s models.

That pricing call is notable given the backdrop. Memory chip prices have jumped 80–90% in the first quarter of 2026 alone, according to Counterpoint Research.

The surge is being driven by a shortage of memory supply, with chips being redirected to AI data centers. Smartphones are losing out in that competition.

Memory is one of the most expensive components in a modern smartphone. Analysts at Gartner forecast smartphone prices could rise 13% across the industry in 2026 as a result.

IDC has gone further, forecasting a 12.9% decline in global smartphone market volume this year due to the chip crunch.

Xiaomi held its flagship prices steady, but analysts warn the company is more exposed than bigger rivals. Apple and Samsung can lean on their premium user bases to absorb cost increases. Xiaomi can’t do that as easily.

The bulk of Xiaomi’s smartphone volume comes from mid-range devices — exactly the category analysts say will be hardest hit if prices rise.

Ben Wood, chief analyst at CCS Insight, said Xiaomi will likely have to raise prices on its low-to-mid-tier devices at some point. Whether they can delay that without hurting margins is the real question.

Xiaomi’s EV Business Picks Up the Slack

Xiaomi’s electric vehicle arm has become an increasingly important buffer. In its most recent quarterly results — covering the September 2025 quarter — EV sales surged nearly 200% year-on-year.

That same quarter, smartphone revenue fell 3% year-on-year. The EV business now accounts for around a quarter of total company sales.

Elliptic Labs Expands on Xiaomi Devices

On a separate front, Norwegian AI company Elliptic Labs announced its AI Virtual Smart Sensor Platform shipped on five new Xiaomi and Transsion devices in February 2026.

The software replaces physical proximity sensors, cutting hardware costs and improving power efficiency. Elliptic Labs’ platform is now deployed across more than 500 million devices worldwide.

Despite the design wins, Elliptic Labs stock (EIP) is down 45.51% year-to-date and carries a current market cap of NOK 389.6 million.

Xiaomi management warned back in November 2025 that the industry would likely need to raise smartphone prices in 2026, a prediction that appears to be playing out.

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