Xiaomi responds to memory price hikes: will accelerate the reshaping of the industry landscape, and future product price increases are not ruled out.

People’s Financial News, March 24 — At the March 24 earnings conference, Xiaomi Group Executive Vice President Lu Weibing stated that the current round of memory price increases is happening faster and more strongly than the company initially expected, posing a significant challenge to Xiaomi’s operations. The lower the proportion of memory costs in the overall product, the less impact it has on the product. Xiaomi’s “full ecosystem of people, vehicles, and homes” is moving toward balance, allowing the company to better respond to memory price hikes. Additionally, the more high-end the smartphones, the less impact there will be. As Xiaomi advances its high-end strategy, it can better cope compared to competitors. Therefore, although the pressure is high, Xiaomi will fare relatively better; if the situation becomes unsustainable in the future, Xiaomi may also consider raising prices. Lu Weibing believes that more attention should be paid to what happens after the price increase cycle. He predicts it will intensify the reshaping of the industry landscape—some companies may even be eliminated, while others will be pushed to innovate more.