Xiaomi 17 and 17 Ultra launch amid memory chip crunch
Xiaomi introduced the Xiaomi 17 Ultra at the Mobile World Congress in Barcelona on March 28, 2026.
Xiaomi
Xiaomi It launched its latest flagship smartphones globally on Saturday as the unprecedented rise in memory chip prices hurt sales.
Xiaomi 17 and 17 Ultra represent the Chinese tech giant’s high-end devices that aim to challenge Samsung and the likes Apple in the upper segment of the market.
Xiaomi, the world’s third largest smartphone player, has maintained the prices of its devices compared to last year’s flagship, despite the huge increase in memory prices, which is critical for smartphones. The Xiaomi 17 starts at 999 euros ($1,179), while the Xiaomi 17 Ultra starts at 1,499 euros.
Counterpoint Research said memory prices have increased by 80% to 90% so far in the first quarter of the year. This increase was driven by a shortage of memory chips, with supply being diverted to data centers for AI.
Memory is an expensive component in a smartphone. According to Gartner’s February forecast, smartphone prices could increase by 13% in 2026. IDC predicts that the smartphone market will decline by 12.9% in 2026 as a result of the chip crisis.
Analysts suggest that companies selling more expensive phones will be more insulated and able to absorb the cost.
The bulk of Xiaomi’s volume comes from mid-range devices, a category that could take a hit to demand from any price increases. Higher-end devices will be unlikely to compensate for any losses.
“This year will be even worse because Xiaomi doesn’t have a very strong premium share, which means they can’t rely on the premium segment to offset lower margins on other devices like Apple and Samsung,” Francisco Jeronimo, IDC’s vice president of data and analytics, told CNBC.
In November, Xiaomi management warned that the industry would likely have to increase smartphone prices in 2026.
Ben Wood, principal analyst at CCS Insight, said Xiaomi will likely have to increase prices of its low- and mid-range devices.
Although Xiaomi still generates the bulk of consumer electronics revenue, the company is ramping up its electric vehicle business in China, which now accounts for about a quarter of all sales. This has become an important source of income in the midst of the memory crisis.
Xiaomi reported a 3% year-on-year decline in smartphone revenue in the September quarter, the last publicly available financial figures. But sales in the electric car business are up almost 200%.
