The sharp rise in memory and storage chip prices, resulting from ongoing supply shortages, has driven up smartphone prices, impacting manufacturers like Xiaomi. The company shipped approximately 33.8 million smartphones in the first quarter of 2026, a 19.2% decrease compared to the same period in 2025. However, a new report indicates that Xiaomi has raised its annual smartphone sales target from around 90 million to 110 million units, reflecting its optimism about improving market conditions.