The recent surge in memory and storage prices, driven by ongoing supply shortages, has led to increased smartphone prices, impacting the overall market. For instance, Xiaomi shipped 33.8 million smartphones in Q1 2026, reflecting a 19.2% decline compared to Q1 2025. However, a new report indicates that Xiaomi is anticipating an improvement in the market conditions and has raised its yearly smartphone sales target from approximately 90 million to 110 million units.
According to the report, which cites sources within the supply chain, most of the increased shipment volume is expected to come from entry-level devices.
An insider has stated that Xiaomi has revised its yearly smartphone sales forecast, expressing optimism that memory prices are about to stabilize and may even reverse.
This stabilization is crucial, as the memory supply shortage and escalating component costs have driven smartphone prices to new heights, causing some products to be canceled or released with limited availability.
In April, Xiaomi President Lu Weibing disclosed that the company was paying CNY1,500 more than in Q1 2025 for a package containing 12GB RAM and 512GB of storage. Therefore, there is a collective hope for a soon-to-be-seen stability in memory prices, which would benefit both consumers and smartphone manufacturers alike.
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