The increase in memory/storage prices due to an ongoing supply shortage has significantly impacted smartphone pricing and sales. In the first quarter of 2026, Xiaomi reported shipping 33.8 million smartphones, reflecting a 19.2% decrease compared to the same period in 2025. However, a recent report indicates that Xiaomi is optimistic about the future, having raised its annual smartphone sales target from approximately 90 million to 110 million units.
According to the report, which references supply chain sources, the bulk of this increased shipment volume is anticipated to come from entry-level devices.
An insider has revealed that Xiaomi's decision to enhance its annual sales goal stems from the belief that memory prices are on the verge of stabilization.
This news is welcomed, as the ongoing supply crisis and escalating component costs have driven smartphone prices to unprecedented levels, resulting in some product cancellations or limited releases.
In April, Xiamoi President Lu Weibing disclosed that the company was spending CNY1,500 more for a package consisting of 12GB RAM and 512GB storage compared to Q1 2025. The stabilization of memory prices would greatly benefit both consumers and smartphone manufacturers alike.
