- Surging AI computing demand has driven global memory chip prices to record highs, pushing retail prices of some Lenovo PC models up by more than 1,000 yuan ($144).
- Xiaomi's smartphone and other businesses are also facing immense cost pressures.
The global AI boom is squeezing the memory chip supply chain, triggering volatility in China's consumer electronics market. Chinese tech giants like Lenovo and Xiaomi are facing unprecedented cost pressures and are being forced to kick off a new cycle of price hikes.
Lenovo has issued price adjustment letters to some offline channel distributors, deciding to raise prices for certain PC products, local media Lanjinger reported on Wednesday, citing people familiar with the matter.
New price lists have already been distributed, with retail prices for some Lenovo PC models surging by more than 1,000 yuan ($144), the person said.
Subsidy policies for student purchases are still in effect, so prices for the student demographic remain unaffected for now, the person added.
Signs of the price hikes had already emerged in online channels. In online stores, product prices have either been directly raised or previous promotional discounts have been canceled, according to the person.
Against the backdrop of a highly volatile global memory chip market, Lenovo is facing unprecedented challenges, the person said, citing Lenovo's explanation, according to Lanjinger.
Lenovo expects to continue facing significant price hike risks for the next three to four quarters, the report noted.
The core driver behind this widespread price increase in consumer electronics is the continuous surge in DRAM and NAND flash prices.
Data from China's National Development and Reform Commission (NDRC) shows that as of January 2026, both DRAM and NAND prices hit their highest levels since 2016. Taking mainstream DDR4 memory as an example, spot prices for some modules have surged by a cumulative 369%.
The smartphone market has not been spared either. Xiaomi founder Lei Jun said on Thursday that surging AI demand has led to a severe shortage of memory chips, bringing immense pressure to Xiaomi's smartphone and related businesses, according to a report by China Youth Daily.
Xiaomi will think of various ways to minimize the difficulty for consumers to accept the changes, Lei said.
($1 = 6.8931 yuan)
