Xiaomi has raised its 2026 smartphone shipment target from around 90 million units to 110 million units. The revision follows the company’s expectation that the increase in memory prices will slow in the second half of the year, although component costs are still expected to stay high.
Memory costs may rise more slowly
Xiaomi President Lu Weibing discussed the outlook during the company’s mid-year earnings call on August 18. He said the pace of memory price increases is expected to ease in the second half of 2026, but prices may continue rising overall.
Xiaomi reportedly maintains long-term partnerships with five major memory suppliers, including Samsung, SK Hynix, Micron, SanDisk, and Kioxia. Lu said Xiaomi currently does not face a supply shortage.
Earlier this year, the company had reduced its shipment expectations twice due to higher storage-chip costs. In March, Lu described the memory-price increase as a long cycle that could continue until the end of 2027.
Xiaomi focuses on higher-priced phones
The higher shipment target is also linked to Xiaomi’s effort to improve its smartphone average selling price. The company is adjusting its product lineup and release timing to increase the share of premium models.
Xiaomi’s smartphone ASP rose 25.9% year-on-year. In China, phones priced above 3,000 CNY, or roughly $420, represented 32.1% of domestic smartphone sales. Xiaomi said both figures reached record levels.
Xiaomi 18 series expected later this year
Xiaomi is expected to introduce its next flagship smartphone generation, likely called the Xiaomi 18 series, later in 2026. The company has not yet confirmed the series name, launch date, or full product lineup.
Lu Weibing also expressed confidence in Xiaomi’s performance for the rest of the year as the company expands both its smartphone and automotive businesses.
EV and AI business continues to grow
Xiaomi’s smart electric vehicle and AI innovation businesses generated 24.9 billion CNY, around $3.6 billion, in revenue during the quarter. That represents 17.1% year-on-year growth.
The company delivered 104,199 vehicles during the period. Xiaomi also introduced its Kunlun technology architecture and began pre-orders for the Pengcheng N90 Max and N70 Max, completing its dual-series vehicle lineup.
Xiaomi said its smartphone business has remained in the global top three for 24 consecutive quarters. The company currently ranks among the top three smartphone brands in 53 countries and among the top five in 67 countries.
