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We might reach the normalization of the memory pricing nightmare sooner than anyone expected. After months of watching smartphone prices skyrocket due to global chip shortages, Xiaomi is making a bold prediction: the memory market is preparing for a swift rebound, and the tide is already turning. The Chinese tech giant is backing up that belief with serious numbers. Supply chain reports reveal that Xiaomi just bumped its 2026 smartphone shipment target from 90 million to 110 million units.
That 16% increase is a massive pivot for a company that had to slash its targets twice earlier this year. More importantly, Xiaomi is aiming the vast majority of those extra 20 million units straight at the entry-level budget market. This is the exact segment hardest hit by expensive RAM and storage chips.
Brands are saying no to price hikes
Xiaomi’s optimistic forecast (via analyst Jukan on X) isn’t just wishful thinking. It reflects a strong shift in how smartphone makers are treating chip suppliers. Downstream companies have simply hit their limit on how much cost they can absorb or pass along to consumers.
In fact, major manufacturers are actively fighting back. Industry sources in China report that rivals OPPO and vivo recently took a hard stance, outright rejecting Samsung Electronics’ proposed third-quarter memory pricing.
Even though Samsung’s suggested increase was smaller than previous quarters, the rejection proves that brand tolerance has finally snapped. Suppliers can no longer demand higher margins without risking orders. The whole scenario signals an inflection point for the entire electronics industry.
Why an early rebound changes the game
The timing of this potential turnaround couldn’t be better. Earlier this year, securing component packages was brutally expensive. Xiaomi President Lu Weibing revealed back in April that a standard 12GB RAM and 512GB storage set cost the company an extra 1,500 yuan compared to 2025.
Those inflated bills caused Xiaomi’s first-quarter shipments to drop nearly 20%, forcing brands across the industry to cancel budget projects or limit regional launches.
It is clear that supply shortages won’t disappear overnight. However, Xiaomi ramping up entry-level production proves they expect memory costs to cool down much faster than analyst projections predicted. When a brand scales up low-margin budget devices, it means they know component prices are about to settle.
The post Is the Memory Crisis Ending? Xiaomi Bets on an Early Market Rebound with Increased Shipment Projections appeared first on Android Headlines.
