reportedly increased its smartphone sales target for 2026 after seeing signs that the prices of memory and storage chips may soon become stable. If component prices stop rising, the company believes it can produce and sell more smartphones during the rest of the year.
According to a new report from the supply chain, Xiaomi has raised its annual smartphone shipment target from around 90 million units to 110 million units. This means the company now expects to sell about 20 million more smartphones than it had originally planned.
The decision comes after a difficult beginning to the year. During the first quarter of 2026, Xiaomi shipped 33.8 million smartphones, which was 19.2 percent lower than the same period in 2025.
One of the main reasons for the decline was the sharp increase in the prices of memory and storage components used in smartphones. As the cost of these parts went up, smartphone manufacturing became more expensive. This forced many companies, including Xiaomi, to either increase phone prices or accept lower profits.
Higher prices also affected customer demand, as many buyers delayed purchasing new smartphones due to rising costs.
According to the report, Xiaomi expects most of its additional smartphone sales to come from entry-level and budget smartphones. These affordable devices are popular in many countries because they offer good features at lower prices.
The company believes that if memory and storage prices become stable, it will be able to produce more affordable phones without increasing prices significantly. This could help attract more customers, especially in price-sensitive markets.
Sources familiar with the matter said Xiaomi decided to raise its sales target because it expects memory prices to stop increasing and possibly begin falling in the coming months. Stable component prices would reduce manufacturing costs and make it easier for the company to meet growing demand.
The rising cost of memory chips has created challenges for many smartphone manufacturers around the world. More expensive RAM and storage have increased the overall cost of making smartphones, reduced company profit margins, and even caused delays or cancellations of some products.
Earlier this year, Xiaomi President Lu Weibing revealed how much component prices had increased. He said the company was paying $222 more than it did during the first quarter of 2025 for a package that includes 12GB of RAM and 512GB of storage. This shows how much memory prices have affected smartphone production costs.
If memory and storage prices finally stabilize, both smartphone companies and customers could benefit. Manufacturers would have greater flexibility to keep phone prices competitive, improve product availability, and launch more devices without worrying about rapidly increasing costs.
Consumers would also benefit because stable component prices could help prevent further price increases, especially for budget and mid-range smartphones, where even small cost increases can have a noticeable impact on retail prices.
Overall, Xiaomi appears optimistic about the second half of 2026. By focusing on affordable smartphones and taking advantage of expected improvements in the supply of memory and storage components, the company hopes to recover from its slow start and significantly increase smartphone shipments before the end of the year.
