Xiaomi Reports a 19 Percent Drop in Smartphone Shipments in Q1

Xiaomi confirmed a 19% year-on-year drop in smartphone shipments in the first quarter of 2026. The company said that the associated fall in revenue was partly offset by an increased average selling price (ASP) driven by a focus on premium devices.

In the face of continued rising costs caused by a global shortage of memory components, Xiaomi shipped 33.8 million units, and smartphone revenue dropped 12.5% to CNY44.3 billion ($6.5 billion). ASP was up 8.2% to a record high of CNY1,310 due to a higher contribution from its premium range. Xiaomi does not detail net profit figures for its smartphone business, but the company-wide figure fell 57% to CNY4.7 billion and revenue 11% to CNY99.1 billion.

The fall in shipment volume was attributed to optimizing its product portfolio and declines in the medium- and low-end tiers. Xiaomi is pursuing what it calls a premiumisation strategy, which it credits with achieving notable results during the period. Smartphones priced at or above CNY3,000 in mainland China accounted for more than 23% of units shipped.

Executives highlighted an expectation that the pressure on the market will continue, given expectations of further memory price increases. “We cannot just simply pass on the cost increase to the consumers,” a representative noted. “If we just increase the price linearly, it is difficult for consumers to accept; we have to look at the user’s needs as well. We have to make products that can meet users’ needs and then sell the products to users at a reasonable price.”