Xiaomi will forgo about US$550 million in Q1 2027 smartphone revenue as its global shipment share drops from 12.1% in Q3 2026 to below 11%.

Taiwan’s manufacturing report on 2 November found that memory shortages were delaying AI deliveries. Memory makers are prioritising higher-paying AI and server customers, keeping prices high for phone manufacturers. Xiaomi has little room to absorb those costs. Its smartphone gross margin was just 8.5% in Q2, even after average selling prices rose 25.9%. Protecting margins therefore means raising prices and risking fewer sales. That trade-off is already visible. Omdia reported that Xiaomi’s Q3 shipments fell 29% from a year earlier, compared with Samsung’s 5% decline. Phones generated 38.7% of Xiaomi’s group revenue, so lost sales carry considerable weight. Slower memory-price increases and premium launches could ease the pressure, but offer little immediate relief for cheaper models.