Xiaomi’s Flagship Launch Collides With Memory Chip Crunch
Xiaomi unveiled its Xiaomi 17 and 17 Ultra globally at Mobile World Congress, holding prices steady at 999 euros and 1,499 euros respectively despite an 80–90% surge in memory chip costs. The company’s smartphone segment faces headwinds as AI data centers divert semiconductor supply, with IDC projecting a 12.9% market contraction in 2026.
Unlike Apple and Samsung, Xiaomi lacks a premium device buffer to absorb the shock. Its EV division, however, delivered a 200% revenue surge last quarter—a rare bright spot as smartphone sales dipped 3%.
Early adopters praise the Xiaomi 17 Ultra’s camera performance, but industry watchers question how long the firm can maintain pricing amid supply chain turbulence.