Memory Crunch Forces Xiaomi and Honor to Raise Tablet Prices as Chip Costs Surge
Chinese tablet makers Xiaomi and Honor have raised prices across multiple product lines as surging memory chip costs squeeze margins, highlighting growing pressure on consumer electronics brands amid the global AI-driven semiconductor shift.
Xiaomi confirmed this week that it has increased prices on several tablets by 100 yuan to 300 yuan. The Beijing-based company, best known for smartphones and electric vehicles, cited rising component costs as the primary driver.
The Redmi Pad 2, launched in June with a starting price of 999 yuan, now sells for 1,199 yuan for the base model. Meanwhile, the premium Xiaomi Pad 8 Pro has risen to 4,099 yuan, up 200 yuan from its September launch price.
Honor, the former Huawei handset unit, has also begun adjusting tablet prices. Lin Lin, head of Honor China’s smart life business, said in a social media post that industries heavily reliant on memory components are facing mounting cost pressures, making price increases increasingly unavoidable.
AI Boom Tightens Memory Supply
The price hikes stem from sharp increases in the cost of RAM and internal storage, which are essential components in smartphones, tablets, and PCs. These rely on DRAM and NAND flash chips, both of which have seen rapid price inflation.
According to Counterpoint Research, global DRAM prices jumped 40 to 60 percent in the fourth quarter and are expected to rise another 15 to 20 percent in the first quarter of 2026.
The surge reflects a strategic pivot by major memory manufacturers toward supplying high-capacity chips for AI workloads and data centers. As a result, supplies of conventional memory products used in consumer electronics have tightened, driving prices higher.
Broader Impact on Consumer Electronics
Xiaomi has already passed some of these costs onto smartphone buyers, raising prices on budget models such as the Redmi K90. Company president Lu Weibing said during an earnings call that Xiaomi plans to manage the pressure by optimizing its product mix and lifting average selling prices.
The impact is not limited to China. Taiwanese laptop makers Acer and Asus have reportedly agreed that rising memory costs will persist into the first half of next year and should be passed on to consumers.
Market research firm TrendForce warned that memory prices could climb again in early 2026, forcing global smartphone and notebook brands to either raise prices or reduce hardware specifications. The firm has already cut its 2026 shipment forecasts, signaling weaker demand as costs continue to rise.
0 Comments