Pareesa Afreen 
Oct 24, 2025
Chinese smartphone maker Xiaomi is facing rising production costs as global prices of memory chips continue to surge, a trend that could soon affect smartphone prices in Pakistan.
The issue is caused by a global deficit of NAND and Dynamic Random Access Memory (DRAM) chips, the key elements found in phones, laptops, and servers. Demand has surged with artificial intelligence (AI) companies preparing for next-gen technology, tightening supply for consumer electronics.
According to Reuters, Xiaomi President Lu Weibing said: “The rising costs of memory chips are far exceeding expectations in the market and are likely to accelerate.”
He added that the company had to increase the price of its new Redmi K90 series, launched this week in China, with the base model now starting at 2,599 yuan ($364), higher than last year’s K80.
Weibing also shared that the price increase would upset some customers, but he offered a temporary 300 yuan discount on the most requested K90 model during the month of sales.
For those in Pakistan, this could be a precursor to the once-in-a-while price increases to the globally discussed Xiaomi smartphones, as industry chip pressure trickles down to their local distributors.
With Xiaomi’s strong presence in Pakistan’s mid-range and budget smartphone segments, a price hike could likely affect its overall sales in the country’s mobile market.
