Skyrocketing memory costs hit REDMI and trigger industry-wide shifts

REDMI product manager Hu Xinxin revealed that memory costs have increased about 5.5 times over the past year. This surge has notably pushed the price of 12GB+256GB memory modules close to 2,000 yuan (approximately $275), according to third-party data.

This sharp rise in memory expenses has forced REDMI to make tougher trade-offs in phone design and pricing. The newly launched REDMI K100 reflects this challenge. Its 12GB+256GB version retails at 3,499 yuan ($480) but is currently offered for 2,999 yuan ($411) as a limited-time discount during the Double 11 shopping festival. Higher memory configurations such as 16GB+512GB are priced even higher, nearing 4,499 yuan ($620) under regular pricing.

Price Details and Promotions for REDMI K100

  • 12GB+256GB: Regular price 3,499 yuan (~$480), Double 11 discount 2,999 yuan (~$411), subsidies reduce price to 2,549 yuan (~$349)
  • 12GB+512GB: Regular price 4,099 yuan (~$565), Double 11 discount 3,499 yuan (~$480), subsidies reduce price to 2,999 yuan (~$410)
  • 16GB+512GB: Regular price 4,499 yuan (~$620), Double 11 discount 3,899 yuan (~$537), subsidies reduce price to 3,399 yuan (~$468)

This device is China only and it will not be out for global markets.

Broader Industry Impact and Product Line Adjustments

The increase in component costs is not unique to REDMI. Industry sources indicate that several phone and tablet lines may face discontinuation due to rising costs and shrinking profit margins.

For example, Meizu announced in February a strategic shift suspending domestic mobile hardware development and seeking third-party partnerships. Similarly, OPPO restructured its sub-brand strategies in July: realme will focus on overseas markets and suspend updates in China, while OnePlus pauses new releases in Europe and North America but maintains updates for India and China markets.

These moves highlight the industry-wide pressure to manage supply costs while balancing innovation and pricing. For REDMI fans and potential buyers, this could mean fewer new models or longer gaps between releases.

Source: ithome.com

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Emir Bardakçı

Co-founder & HyperOS Expert

Keeping a pulse on Xiaomi, HyperOS, and the Android world. Tech enthusiast, photography lover, and detailed reviewer.

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