XIAOMI(HK:01810) Jin Rong Jie·2026-02-27 07:20Core Viewpoint - The Chinese smartphone industry is set to undergo a significant price increase, marking the largest collective price adjustment in five years, driven by fluctuating memory costs and increased demand for AI servers [2][3]. Group 1: Price Adjustments - Major smartphone brands including OPPO, OnePlus, vivo, Xiaomi, iQOO, and Honor plan to initiate a new round of price adjustments in early March [2]. - The average price of new smartphones in the Chinese market is expected to rise by 15% to 25% compared to similar models in 2025 [3]. - The price increase for new models will be substantial, with a minimum increase of 1,000 yuan and flagship models potentially seeing increases of 2,000 to 3,000 yuan [3]. Group 2: Market Dynamics - The demand for AI servers is consuming part of the memory production capacity, leading to a significant rise in storage chip prices, which is a key driver of the current smartphone price hikes [3]. - Since the second half of 2025, memory prices have experienced a rapid increase, with a projected quarter-on-quarter rise of 80% to 90% in the first quarter of 2026 [3]. - Recent models like the Redmi K90 series and iQOO 15 have seen price increases of 100 to 600 yuan compared to their predecessors, with some mid-range models experiencing price hikes of up to 20% [5]. Group 3: Consumer Behavior - The price increase is expected to lead some consumers to delay upgrading their devices, particularly in the mid-range segment where price hikes are anticipated to be smaller than in the high-end segment [5]. - The narrowing price gap between Android flagship products and Apple products may lead some consumers to switch to Apple, which is less likely to raise prices due to its cost control and profit margins [5].