Xiaomi President Lu Weibing revealed on Weibo that the company is now paying $217 more for each 12GB RAM plus 512GB storage package compared to early 2022. The surge comes as AI data centers consume memory components, driving up costs for smartphone manufacturers worldwide and squeezing already tight profit margins.

Current pricing represents a four times increase from just a few years ago, with Xiaomi now paying approximately $288 for components that cost $72 previously. The manufacturer will increase prices for the Redmi K90 Pro Max by $29 starting April 11 while canceling promotions on Redmi Turbo 5 models to absorb some of the cost increases.

These price adjustments only affect the Chinese market, where Xiaomi operates with thinner margins on Redmi devices. While international customers won't see immediate changes, global component shortages could lead to similar price hikes elsewhere as manufacturers pass increased costs to consumers who are already facing economic pressures.