Xiaomi, Oppo, and Vivo Slash Smartphone Shipment Targets For 2026 as Component Costs Rise

Chinese smartphone brands Xiaomi, Oppo, and Vivo have reportedly reduced their 2026 smartphone shipment targets amid rising component prices and ongoing supply shortages. The latest cuts reflect the growing pressure on manufacturers as they struggle to secure key parts needed for smartphone production.

According to recent reports, Xiaomi has made the biggest revision to its shipment forecast. Earlier this year, the company had already lowered its target from the 170 million smartphones it shipped in 2025 to around 135 million units for 2026. It has now reduced that estimate by another 30%, bringing its expected shipments down to approximately 95 million units. Sources familiar with the matter say Xiaomi has informed suppliers that the number could fall even further if supply conditions fail to improve in the coming months.

Xiaomi, Oppo, and Vivo Slash Smartphone Shipment Targets For 2026 as Component Costs Rise

Oppo and Vivo have also revised their production plans. Both companies are now expected to ship fewer than 90 million smartphones in 2026. Meanwhile, Honor, which achieved record shipments of 71 million devices last year, has reportedly warned suppliers that maintaining the same level of growth this year may not be possible.

Industry executives say these reductions are becoming common across the smartphone market. Many Chinese manufacturers are now planning for shipment declines of at least 15%, while some companies have cut their forecasts by 20% to 30% compared to the estimates they shared at the end of last year.

One of the biggest reasons behind these production cuts is the growing demand for components from the artificial intelligence industry. Smartphone manufacturers are now competing with AI companies for essential parts such as low-power DRAM memory chips. These chips, which were once mainly used in mobile devices, are increasingly being supplied to AI servers and data centres due to the rapid growth of artificial intelligence technologies.

At the same time, major chip companies like MediaTek and Qualcomm are placing greater focus on the fast-growing data centre market, where demand and profit margins are higher. Reports suggest that MediaTek has already informed customers about upcoming price increases because of higher manufacturing costs.

The problem is not limited to memory chips alone. Other important components, including printed circuit boards (PCBs), processors, advanced chip packaging services, and even raw materials such as glass cloth, are also becoming more expensive or harder to source. These supply challenges have increased production costs across the smartphone industry.

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Budget and mid-range smartphone makers are expected to feel the greatest impact. Since these companies compete mainly on affordable pricing, passing higher production costs directly to customers is difficult. Raising prices could reduce demand, while maintaining current prices would hurt profit margins. As a result, many manufacturers have chosen to reduce production instead of selling devices at lower profits or even losses.

Market research firms have also become more cautious about the industry’s outlook. Counterpoint Research now expects the global smartphone market to decline by 14% in 2026, which would mark one of the sharpest annual drops on record. IDC has also predicted a significant market slowdown, with Android smartphone shipments expected to fall even more than the overall market.

Despite the challenges, Samsung is believed to be in a stronger position than many of its competitors. The company’s focus on premium smartphones and better access to memory supplies may help it manage the ongoing shortages more effectively. Meanwhile, demand for refurbished and second-hand smartphones is increasing, particularly in China, as more consumers choose to keep their existing devices for longer instead of upgrading to new models.