The surge in memory/storage prices due to the ongoing supply shortage has led to higher smartphone prices, which has also affected the business. Xiaomi, for example, shipped 33.8 million smartphones in Q1 2026, a 19.2% decline from Q1 2025. However, a new report claims that Xiaomi is expecting the situation to improve as it has raised its yearly smartphone sales target from around 90 million to 110 million units.
The report, citing supply chain sources, states that most of the additional shipment volume is expected to come from entry-level devices.
A person familiar with the matter says that Xiaomi has increased its yearly smartphone sales target, as it believes memory prices are poised for a reversal and could stabilize.
We really hope that’s the case, as the memory supply shortage and higher component costs have sent smartphone prices skyrocketing, with some products being canceled or getting a limited release.
Back in April, Xiaomi President Lu Weibing revealed that the company was paying CNY1,500 more than it did in Q1 2025 for a package of 12GB RAM and 512GB storage. So here’s hoping that memory prices stabilize soon, as it will be in the best interests of both customers and smartphone brands.
