Memory costs ‘beyond imagination’ hurting smartphone makers: Xiaomi leader
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Firms are being drawn into a price-raising cycle that could reshape the industry, executive says as company reports 27 per cent profit drop.

Rising memory-chip costs could reshape the smartphone industry, said Xiaomi president William Lu Weibing, after weak smartphone sales cut into the firm’s fourth-quarter profit. Memory prices were surging at a magnitude “beyond imagination”, drawing smartphone makers into a long-term price-raising cycle, Lu said on an earnings call on Tuesday. “When the price-raising cycle ends, some players may suffer significant losses or even face closure,” he said, without elaborating. However, the challenge…

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