Cheap Android smartphones no more? Xiaomi and Samsung are signaling price hikes for upcoming models, driven by soaring chip costs and AI demand. Here’s what that could mean for your next device upgrade.
In recent years, smartphone prices have steadily increased, and this trend has affected many manufacturers. 2026 looks no different, with Samsung already rumored to raise the price of its top-tier Galaxy S26. But beyond the South Korean giant, another major Android brand is hinting at similar plans for next year: Xiaomi.
Blame AI for Your Pricier Phone
The warning comes directly from Xiaomi President Lu Weibing (via Reuters). In a message to reporters during financial conference calls, he said he “expects pressure to be much heavier next year than this year.” The reason is the rising demand and cost of memory chips, largely driven by the AI boom, with much of these resources being diverted to data centers powering AI servers.
He added that consumers should brace for a “sizeable rise in product retail prices,” suggesting that Xiaomi’s products, including smartphones, will become more expensive to offset the higher cost of memory chips.
Xiaomi 17 Pro and 17 Pro Max with rear secondary displays Image source: Xioami
Price hikes have already appeared in Xiaomi’s latest models, including the Xiaomi 17 and Xiaomi 17 Pro, which launched at higher prices than their predecessors. The same trend is seen across mid-tier and premium devices, and these increases are reflected in global markets as well.
Samsung is also feeling the impact of memory chip demand. Reports suggest the Galaxy S26 Ultra will cost more than the Galaxy S25 Ultra (review). While the standard Galaxy S26 may keep its price unchanged, Samsung could scale back some upgrades to maintain affordability.
Should You Get a New Phone This Year?
Ultimately, consumers bear the brunt of these rising costs. While recent price increases have not slowed global smartphone sales, there may come a point when higher prices begin to affect demand.
For Xiaomi, Q3 2025 showed slim margin growth of just 0.5% compared to the same quarter last year, based on Omdia’s market research. This could signal that other brands, such as Samsung and Apple, are capturing larger portions of the market.
With smartphones becoming more advanced and offering longer software support, users are also holding onto their devices for longer periods, which may further influence sales cycles.
Right now, if you are planning to buy a new smartphone, this year might be a better time, especially with Black Friday sales around the corner.
What do you think of the potential price increase in Xiaomi smartphones? Would it stop you from buying one? Share your thoughts in the comments.
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