Xiaomi's 2026 Earnings May Be Hit by High Memory Prices

Xiaomi's 2026 Earnings May Be Hit by High Memory Prices

Morningstar analyst Dan Baker notes that Xiaomi's 2026 earnings are likely to be weighed by high memory-chip prices. Xiaomi products, particularly smartphones and laptops, are being affected by rising memory prices.

AI Demand Drives Memory Prices Up

Driven by strong artificial-intelligence demand, memory-chip prices have risen sharply. Baker adds that Xiaomi has prioritized high-end smartphones as memory chips make up a lower proportion of the costs for these devices.

Normalization Expected by 2028

There might be some normalization of memory prices in 2028 once supply catches up with demand, he says.