Key Takeaways
- Xiaomi has increased its annual smartphone shipment target to 110 million units.
- The company expects memory and storage prices to stabilize, aiding sales growth.
- Entry-level smartphones are expected to drive the majority of this increase.
Chinese tech giant Xiaomi has raised its annual smartphone sales target to 110 million units, reflecting optimism that rising component costs will soon stabilize. This comes after a challenging first quarter for the company, which saw shipments fall by 19.2 percent year-on-year to 33.8 million smartphones in Q1 2026.
According to a supply chain report cited by ProPakistani, Xiaomi’s revised target is driven by its belief that memory prices are nearing a turning point and could soon stabilize. The company has been grappling with increased costs for RAM and storage components, which have pushed up the overall cost of smartphones and affected market demand.
Xiaomi President Lu Weibing acknowledged the impact on the company’s finances, noting in April that the firm was paying $222 more than it did in Q1 2025 for a package containing 12GB RAM and 512GB storage. This significant increase has not only reduced profit margins but also led to limited availability of certain products.
In response, Xiaomi is focusing on entry-level smartphones as the primary driver of its shipment recovery. The company believes that these lower-priced devices will see increased demand if component costs stabilize or begin to ease. Entry-level phones are expected to play a major role in achieving the new target, reflecting Xiaomi’s strategy to tap into segments where cost increases have less impact.
The stabilization of memory prices could benefit not only smartphone manufacturers but also customers. If prices do indeed stabilize, it is likely that brands will be able to control pricing more effectively and improve product availability, particularly in budget and midrange segments. This would provide relief for consumers who have faced higher costs and limited choices due to the ongoing component shortage.
For now, Xiaomi appears optimistic about the second half of the year, with plans to focus on entry-level devices to drive its sales growth. The company’s revised target underscores its determination to navigate through current challenges and capitalize on any improvements in the market conditions.
