Blogger claims that the increase in storage prices has reduced the overall gross profit of Xiaomi mobile phones to 10%, and the cost of SU7 will also increase.

The crazy price increase of storage has directly compressed the profits of mobile phone manufacturers, and this situation is getting worse. Counterpoint stated in its latest report that memory prices have soared by 80%-90% month-on-month in the first quarter of 2026, with the price of 64GB server memory rising from US$450 to more than US$900 (approximately 7,000 yuan today).

In addition, TrendForce also raised its DRAM growth forecast from 55-60% to 90-95%.

In the face of rising storage prices, blogger "Grain Factory Researcher" published an article pointing out that for Xiaomi, this is a severe cost pressure test.

"The proportion of memory chips in the BOM cost of mobile phones has soared from 10%-15% to 20%-30%, making the overall gross profit margin of Xiaomi mobile phones close to the sensitive line of 10%, and the impact on mid- and low-end models is even more severe," the blogger said.

In addition to mobile phones, Xiaomi cars have also been affected by the increase in storage prices.

The above-mentioned blogger said that Xiaomi SU7, a storage-intensive high-end smart electric vehicle, will not be spared, and the cost of bicycle storage is expected to increase by 1,000-3,000 yuan.

Lei Jun bluntly stated in a live broadcast in January that car memory will increase by several thousand yuan according to this trend, and the supply satisfaction rate of memory chips in the automotive industry may be less than 50%, posing huge supply risks.

In this regard, Lu Weibing's solution is that Xiaomi has signed a storage supply agreement for the whole year of 2026 in advance to ensure "no worries about supply." At the same time, Xiaomi is deepening domestic substitution and expanding the procurement ratio of Yangtze River Storage and Changxin Storage - the cost of domestic solutions can be 15%-20% lower than that of international manufacturers.
The increase in storage prices has squeezed the profits of the mobile phone industry. Lei Jun is helpless in the face of this situation. After all, his own car will also be implicated...