Chip orders for notebooks from Huawei Device and Xiaomi have fallen rapidly recently, according to industry sources.

Huawei and Xiaomi have both set their shipment goals at one million notebooks for 2016, which are likely to fail, the sources indicated. Orders placed by the two vendors already fell below 100,000 units each in March, the sources said.

Xiaomi once demanded its contract maker Inventec and other related Taiwan-based components suppliers get ready for monthly orders for as many as 300,000-400,000 notebooks, the sources noted. However, actual orders placed by the China-based firm reach only less than 50,000 units, the sources said.

Notebook orders placed by Huawei have also been lower than expected, the sources indicated. Huawei's initial focus on high-end 2-in-1 models is hampering its notebook sales, the sources said.

Both Huawei and Xiaomi are unlikely to replicate their successful business models for smartphones in developing their notebook businesses, since the notebook market is already a low-margin business, the sources suggested.