Chinese smartphone maker Xiaomi said Friday that soaring memory chip prices have pushed up the cost of manufacturing its handsets, following market disappointment over the pricing of its new Redmi K90 series.

“Cost pressures have been passed on to the pricing of our new products,” President Lu Weibing wrote on Weibo. “Memory chip costs have surged far beyond expectations and may continue to rise.”

Xiaomi launched the entry-level Redmi K90 on Thursday, with the base model featuring 12 GB of memory and 256 GB of storage priced at 2,599 yuan ($364), compared with 2,499 yuan for the base K80 series model released in November 2024.

Acknowledging consumer concerns over pricing differences between configurations, Lu said Xiaomi would cut the price of the most popular K90 variant — 12 GB memory and 512 GB storage — by 300 yuan to 2,899 yuan for the first month of sales.