Xiaomi has cautioned that smartphone prices could increase next year due to a sharp rise in global memory chip prices, driven by soaring demand for chips used in artificial intelligence (AI) servers. Major manufacturers like Samsung are prioritizing high-speed memory production for AI applications, reducing output for mobile chips and tightening supply. Xiaomi President Lu Weibing said the company expects greater cost pressure in the coming year, noting that even higher retail prices may not fully offset production expenses. Despite modest sales growth of 0.5% year-on-year in the third quarter, Xiaomi’s revenue of 113.1 billion yuan fell slightly short of analyst expectations, and its Hong Kong-listed shares dropped 2.81% on the announcement. However, the company’s net profit surged 80.9% to 11.3 billion yuan, supported by new ventures in electric vehicles, AI, and other emerging technologies, which now account for a quarter of total revenue.