Xiaomi is poised to become one of the clearest examples of today’s smartphone price inflation, with reports indicating the company will raise the launch price of its next flagship by about 10%. And Xiaomi likely won’t be alone. As memory costs surge in an AI-fueled “DRAM supercycle,” other major phone brands are expected to respond the way big hardware makers often do when key components get more expensive: by increasing retail prices to protect profit margins.
According to a report from a South Korean outlet, Xiaomi plans to unveil the Xiaomi 17 Ultra at 19:00 local time in China on December 25. The phone is expected to start at 6,999 yuan (about $996). That’s a notable jump from the Xiaomi 15 Ultra, which reportedly launched at 6,499 yuan—roughly a 10% increase.
The pricing pressure may be even more noticeable outside China. The same reporting claims global pricing and shipping will add another layer of cost, with international launch prices expected to come in around 10% higher relative to the China launch price. For consumers watching flagship phone prices creep upward year after year, the Xiaomi 17 Ultra could be one of the more visible steps in that direction.
The bigger story, though, is what this signals across the wider smartphone market. The report suggests Samsung and Apple are also weighing meaningful price adjustments for next year’s devices. In Samsung’s case, the company is rumored to have already settled on approximately 10% price increases for the Galaxy S26 series as well as its next foldables, the Galaxy Z Fold 8 and Galaxy Z Flip 8. If competitors follow suit, the next smartphone upgrade cycle could arrive with sticker shock across multiple premium lineups.
Behind these increases is the ongoing surge in memory pricing, driven in part by rising AI-related demand. Smartphones rely heavily on DRAM and storage components, and when those parts spike, the impact can ripple through the entire bill of materials. Even companies that ship enormous volumes can struggle to fully absorb those costs without changing pricing strategy.
Xiaomi appears to be taking steps to secure supply for the long term, even if it comes at a premium. Xiaomi Group President Lu Weibing recently said the company has locked in sufficient memory chip supplies for 2026 through a dedicated agreement, reportedly likely tied to China’s YMTC. Securing guaranteed supply can protect production plans and reduce uncertainty, but those contracts can be expensive—costs that often end up reflected in the final retail price.
In other words, the Xiaomi 17 Ultra’s expected price bump may not be a one-off. It could be an early indicator of where flagship smartphone pricing is headed in 2026, as brands balance component inflation, supply guarantees, and the need to maintain margins in a hotter, more expensive memory market.
