Xiaomi isn’t giving up on $100 phones despite global rising costs

The world of smartphones is undergoing a transition as prices for components escalate. This brings forth several questions as to whether the age of $100 phones is now history. What has long been defined by Xiaomi’s budget model for several years has changed due to different economic factors. Contrary to popular belief that affordable smartphones are extinct today, there is actually a shifted focus towards the Xiaomi HyperOS.

The Economic Pressure on Affordable Smartphones

The price of memory chips and 5G modems has greatly affected the production of budget devices. In the year 2026, the manufacturing of a fully functioning smartphone for less than $100 is even more difficult than before because of the effects of globalization in the form of inflation. Xiaomi has continued to improve its supply chain in order to make technology accessible to people in developing nations without straining their pockets.

Current Xiaomi Under-$100 Models and Specifications

Nonetheless, in the midst of tough economic times, some models retain their value to consumers who need nothing more than the fundamental functionality of devices. The Redmi A4 5G and the Redmi 14C models demonstrate how the company, Xiaomi, successfully merges performance and affordability. The firm’s focus on the fundamental requirements of these users, including the display, has kept the company at the pinnacle of the budget market segment while incorporating these users into their ecosystem.

Future of Budget Segment

Moving forward, the budget smartphone market will not be extinct but will evolve into a services-based ecosystem. Xiaomi utilizes these cheap handsets as a gateway device that will enable users to interact and discover more about the Xiaomi HyperConnect service. Although profit margins on hardware sales are low, value lies in delivering software updates, linking users to home automation devices, and providing a seamless digital lifestyle to every individual around the world.

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