Xiaomi has reportedly raised its yearly smartphone sales target from around 90 million to 110 million units, according to supply chain sources cited in a new report. The company shipped 33.8 million smartphones in Q1 2026, representing a 19.2% decline from Q1 2025.

The surge in memory and storage prices due to ongoing supply shortages has driven up smartphone costs, leading to product cancellations and limited releases. Xiaomi President Lu Weibing revealed in April that the company was paying CNY1,500 more than in Q1 2025 for a package of 12GB RAM and 512GB storage.

Xiaomi believes memory prices are poised for a reversal and could stabilize soon, with most additional shipment volume expected from entry-level devices. The normalization would benefit both consumers and smartphone brands as component costs ease.