Xiaomi, OPPO, Vivo cut 2026 shipment targets as Honor warns
Xiaomi, OPPO, and Vivo are dialing back their 2026 smartphone shipment goals by up to 30% because they just can't get enough key components.
For example, Xiaomi dropped its forecast from 135 million to about 95 million phones, way down from last year's numbers.
Honor is also warning suppliers that growth could slow even more if the supply crunch keeps up.
AI demand forces budget phone cuts
A big reason for the shortage: crucial parts like low-power DRAM chips are now being snapped up by AI companies for servers instead of going into phones. Other essentials, like processors and circuit boards, are tough to find too.
Since brands like Xiaomi and Vivo mainly sell budget-friendly phones, they can't simply raise prices to cover higher costs.
So, they're cutting back production to avoid bigger losses while hoping things improve soon.