Xiaomi Shipments Fall Over 30 Percent as It Pulls Back From Cheap Phones

Xiaomi had the worst quarter of any big smartphone brand in Q3 2026. Its global shipments fell more than 30% year on year, and its market share dropped from 14% to 10%, according to Counterpoint Research data reported by AppleInsider.

The whole market fell 20% in the quarter, so some of this was unavoidable. But Counterpoint says some of Xiaomi's drop was by design.

Xiaomi is walking away from loss-making phones

Counterpoint says Xiaomi is scaling back in the low-price segment and in overseas markets outside its key regions, while raising its average selling price. The goal is to avoid selling phones at a loss while the memory shortage drags on.

The logic behind the decision is that budget phone already runs on thin margins. When RAM and storage prices jump, memory eats a bigger share of a Rs 10,000 phone's cost than it does in a Rs 60,000 flagship. At some point, shipping more cheap phones just means losing more money on each one.

The slide has been building all year

This did not start in Q3, 2026. Xiaomi's shipments fell 19% in Q1 2026, and in Q2 it posted one of the steepest declines among the top five brands, with its share slipping to 12%.

The best-seller charts tell the same story. In Q1, the Redmi A5 was the only phone in the global top 10 not made by Apple or Samsung. By Q2, Apple and Samsung held all ten spots.

Where Xiaomi is still pushing

Xiaomi is not shrinking everywhere. Counterpoint says it continues to build its presence in the upper mid-range and premium segments in China, where the Xiaomi 18 series and its foldables have been doing well. The new Xiaomi 18 Pro and 18 Pro Max come with 200MP Leica cameras and Snapdragon 8 Elite Gen 6 chips, which is the kind of phone where memory costs hurt far less.

What this means for Redmi buyers in India

India is one of Xiaomi's most important markets. The company says it has more than 130 million users in India, and nearly all of its phones sold here are now made locally. Counterpoint has not said whether India counts as one of the core markets Xiaomi is protecting.

Xiaomi's India numbers have held up better than its global ones. Its share in India stayed at about 13% in Q2 2026, including Poco, according to Counterpoint. CMR's figures for Q1 were softer, putting Xiaomi at 12%, down 7% year on year.

The pullback from cheap phones is already visible in Indian prices. As of June, the Redmi 15C with 4GB RAM and 128GB storage cost Rs 16,999, up from its launch price of Rs 12,499. The base Redmi 15A went from Rs 12,999 to Rs 14,999. Another round of hikes in July added Rs 2,000 to the Redmi Note 15 5G and Rs 5,000 to the Xiaomi 17T.

Xiaomi India's own messaging fits this direction. COO Sudhin Mathur has spoken about disciplined segmentation and a sharper portfolio for 2026, which points the same way as the global numbers.

What to expect next

Counterpoint said in July that brands would keep cutting low-margin models, adjusting storage configurations and leaning more on refurbished and older phones until supply improves. For Redmi buyers, that likely means fewer new launches under Rs 10,000, with older models staying on sale longer to fill the gap.

If you are shopping for a budget phone right now, last year's Redmi or a festive season deal on an older model is likely to give you better value than waiting for a cheap new launch.