Xiaomi reportedly ups its yearly smartphone sales target as it senses memory market normalization

Xiaomi Ramps Up Smartphone Sales Forecasts Amidst Memory Market Normalization Hopes

The global smartphone industry has recently navigated turbulent waters, marked by significant increases in memory and storage component costs. This surge, stemming from persistent supply shortages, has inevitably driven up smartphone retail prices, impacting market performance. For instance, Xiaomi reported shipping 33.8 million smartphones in Q1 2026, a notable 19.2% decrease compared to Q1 2025. Yet, a recent report indicates a wave of optimism from the tech giant, as Xiaomi has now elevated its annual smartphone sales projection from approximately 90 million to an ambitious 110 million units, anticipating a crucial market turnaround.

This significant revision to Xiaomi's sales strategy, according to insights from supply chain sources, primarily hinges on the robust performance expected from entry-level smartphone devices. A substantial portion of the anticipated additional shipment volume is slated to originate from this accessible segment, suggesting a strategic focus on broader market penetration.

Underpinning Xiaomi's renewed confidence is an internal assessment suggesting that memory component prices are on the brink of reversal and stabilization. This belief is a critical factor in their revised yearly sales goal. The smartphone landscape has indeed been challenging, with the memory supply crunch and escalated component costs pushing device prices to unprecedented highs, even leading to product cancellations or limited regional releases.

Previously, a high-ranking Xiaomi executive highlighted the substantial financial burden, noting a considerable increase in the cost of crucial components like a 12GB RAM and 512GB storage package in Q1 2026 compared to the previous year. Therefore, the prospect of memory price stabilization is not just a hope but a vital development that promises mutual benefits for both consumers seeking affordable devices and smartphone manufacturers striving for healthier margins.

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