XIAOMI(HK:01810) Guan Cha Zhe Wang·2025-12-22 09:30Core Viewpoint - Xiaomi's 17 Ultra series is set to be officially launched on December 25, 2023, with a significant price increase anticipated due to rising memory costs [1][2]. Pricing and Cost Factors - The pricing pressure for the Xiaomi 17 Ultra is primarily attributed to a substantial increase in memory prices, which has outpaced the cost increases of processors and camera configurations [2]. - The expected starting price for the Xiaomi 17 Ultra is projected to rise to 6,999 yuan, an increase of 500 yuan compared to the previous generation [8]. - The global storage market is experiencing a "super cycle," leading to widespread price increases across various smartphone brands, with price hikes ranging from 100 to 500 yuan [8]. Product Specifications - The Xiaomi 17 Ultra will feature the Qualcomm Snapdragon 8 Gen 2 processor, a 6.8-inch display, and an increased battery capacity of 6,800 mAh, up from 6,000 mAh in the previous model [6]. - The device will include a 1-inch LOFIC main camera and a 200-megapixel Leica APO telephoto lens, promising significant advancements in night photography [6]. Market Trends - The demand for high-performance computing (HPC) driven by AI has shifted memory production priorities, resulting in a tight supply for mobile devices [2]. - According to recent reports, the DRAM industry is expected to see a 30.9% quarter-over-quarter revenue increase, reaching $41.4 billion by Q3 2025, with further price increases anticipated [8]. Strategic Responses - Xiaomi has signed supply agreements with partners to secure its supply chain through 2026, indicating a proactive approach to manage rising costs [9]. - The company acknowledges that while price increases may help absorb some of the rising memory costs, not all costs can be passed on to consumers, necessitating improvements in product structure to mitigate the impact [9].