A chip from a ¥1,000 phone — why are Chinese smartphone prices jumping?

What happened

Xiaomi (小米) on April 11 announced modest price adjustments across several REDMI (REDMI) models, attributing the move to a sustained, sharp rise in global memory and other key component costs. REDMI K90 Pro Max was increased by ¥200, while Turbo 5 and Turbo 5 Max lost a New Year discount (the 512GB Turbo models will still carry a ¥200 subsidy). It has been reported that the changes took effect at 00:00 the same day.

The company explanation

Lu Weibing (卢伟冰), president of Xiaomi Group, said the current round of memory-price increases has been far larger than expected — reportedly nearly four times higher than Q1 last year for the same capacity — and that configurations such as 12+512GB have seen roughly ¥1,500 jumps, with higher-capacity SKUs rising even more. “So we have to make small upward adjustments or restore prior pricing,” he said, asking customers for understanding. Compared with peers, REDMI’s increases were among the smallest; other manufacturers have raised retail prices by around ¥500 on many models.

Bigger picture

Why does a memory-price move ripple through the market? Smartphone makers slim margins on hardware and compete on features and perceived value. When commodity components like NAND flash and DRAM spike, companies either eat the cost or pass it to buyers. The squeeze comes amid broader supply tightness and geopolitical frictions that have disrupted global chip markets, and it is affecting mainstream and high-end segments alike. Reportedly, manufacturers are prioritizing inventory and capacity for flagship lines, which can amplify price divergence between similar-looking devices.

What consumers should watch

Is this temporary sticker shock or a longer reset in phone pricing? For value-conscious buyers, REDMI’s relatively small increase may be tolerable — but the episode highlights why a device with parts similar to a cheaper phone can still carry a steep premium: supply, capacity, and positioning matter. Consumers asking “a chip from a ¥1,000 phone — why am I paying ¥4,299?” are really asking about broader market dynamics, not just a single component.