Xiaomi's Buyback and EV Surge Meet a Stubborn Smartphone Slump
Published on 10/09/2026 at 05:01 | Editorial boerse-global.de
Xiaomi is pressing ahead on two fronts at once — deepening the integration of its device ecosystem and scaling up its young automobile business — yet none of it has managed to lift the share price out of its rut. The stock closed Thursday at EUR 2.69, down 1.2% on the day, and has now shed 38% since the start of the year.
The disconnect between operational momentum and market sentiment was on full display this week. On Wednesday, the company announced that its HyperOS 4 operating system will gain expanded compatibility with Apple devices. The planned features include cross-device content sharing, two-way access to cloud photo libraries, and synchronized notifications. By opening its platform to users of rival operating systems, Xiaomi aims to lower the barriers that keep consumers locked into a single brand and draw them toward its own services.
That software push comes alongside a reboot of development activity in China. According to media reports, regular development and testing work on HyperOS was set to resume on Thursday following the country's public holidays. The platform serves as the technological backbone linking Xiaomi's phones to the rest of its product ecosystem.
SkyNomad Orders and September Deliveries
The vehicle unit continues to provide the clearest growth story. Xiaomi Auto said Thursday that its Sky-Nomad model line has drawn more than 70,000 binding orders in the first 30 days since launch. For September, the automaker delivered over 40,000 vehicles in total, with the new line already contributing a meaningful share in its debut month.
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Ramping up production is seen as the decisive factor for the division's long-term profitability. Clearing the order backlog quickly would demonstrate that manufacturing capacity can keep pace with customer demand — though the expansion also means persistently heavy investment for the group.
Marketing efforts are running in parallel. On October 3, the auto unit announced that its Vision GT concept car will be added to the Gran Turismo 7 racing simulation this month. And on October 2, Xiaomi unveiled the REDMI Note 17 series in Nigeria, spanning four model variants. The flagship REDMI Note 17 Pro Max 5G packs a 10,000 mAh battery and 100-watt charging, according to company statements.
Buybacks Aimed at Steadying the Ship
To support its shares, Xiaomi turned to repurchases. On Monday, the company bought back 2,000,000 of its own Class B shares for a total of HKD 47.5902 million, with the stock to be cancelled. It also acquired further Class B shares for roughly HKD 99.238 million, likewise earmarked for cancellation.
Cancelling the repurchased stock reduces the number of shares in circulation. Moves of this kind are meant to signal management's confidence in the company's fundamentals, but they rarely turn the broader market mood on their own.
HSBC Starts Coverage With a Buy
Analysts offered some backing. HSBC initiated coverage of the stock on September 30 with a "Buy" rating and a price target of HKD 33.20. At the same time, the bank tempered expectations for the core business, forecasting a 10% decline in Xiaomi's global smartphone revenue for full-year 2026.
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Regulatory friction abroad adds another layer of uncertainty. Media reports indicated that India's Serious Fraud Investigation Office proposed a broader probe into Xiaomi's local operations. The company pushed back on those reports, stating it had received no official notice from the authority.
Whether the auto division's expansion can offset the drag in the traditional hardware business will largely determine where the stock heads next.
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