Xiaomi will not simply pass memory-price rises to customers; new OS due in July or August, says Lu Weibing

Key takeaways

It has been reported that Lu Weibing (卢伟冰), president and partner of Xiaomi (小米), told investors on the company’s earnings call that Xiaomi will not simply pass rising memory costs onto consumers. The company — long focused on a value-for-money proposition while pushing upmarket — reported resilient performance: global smartphone share in the top three for 23 consecutive quarters, record average selling prices, and handset gross margins above market expectations.

Memory costs, product repositioning and margin strategy

Facing a sector-wide memory-price upcycle, Lu said Xiaomi will “reposition” products rather than immediately hike retail prices. Reportedly, the plan combines a refined product matrix and software-led optimization to preserve both scale and profitability. Why does this matter? Memory and other component cycles are shaped not only by supply and demand but also by global trade policy and semiconductor supply-chain dynamics — factors that have grown more prominent for Chinese OEMs in recent years.

New OS and AI push

It has been reported that Xiaomi will ship a new-generation OS in July or August, promising a different interaction model and deeper AI integration. Lu framed this as part of Xiaomi’s dual push: high-end smartphones and globalization on the hardware side, and AI-driven differentiation on the software side — citing a coming convergence of “Super Xiao Ai” (超级小爱) and miclaw as a key node. For Western observers, the move underscores how Chinese device makers are betting on software and AI to offset hardware-cost pressures and to compete with incumbents such as Apple and Samsung amid a fraught geopolitical backdrop.