Xiaomi's Premium Push Faces Profit Test as CLSA Cuts Forecasts
Published on 11/12/2026 at 22:01 | Editorial boerse-global.de
Xiaomi is selling fewer bells and whistles for more money — and now has to prove that trade-off pays off. The Chinese handset and EV maker's average smartphone selling price climbed to $267 in the third quarter of 2026 from $221 a year earlier, according to Counterpoint Research, even as smartphone revenue held flat year on year. Higher revenue per device, in other words, without a bigger top line.
That mix shift toward pricier handsets is the bull case. Whether it becomes an earnings case is another matter, and CLSA isn't waiting to find out: the brokerage trimmed its profit forecasts today and expects a marked decline in earnings for the September quarter. Investors, the note implies, should judge Xiaomi on whether premium devices actually lift profitability rather than merely flattering the average selling price.
The broader market offers some support. Counterpoint puts industry-wide smartphone revenue up 3% in the third quarter of 2026, and the research firm expects handset prices to keep rising next year — alongside falling shipments. For Xiaomi, that combination cuts both ways: richer price tags present an opportunity as long as buyers accept them, but demand risk grows if expensive devices prompt shoppers to delay purchases.
Should investors sell immediately? Or is it worth buying Xiaomi?
Two Dates Circled in November
Management has scheduled a global product event for November 17 in Paris, where the Xiaomi 18 Pro and Xiaomi 18 Pro Max will take the stage. Wearables, earbuds and Mijia-branded home appliances will round out the showcase. A wider product lineup can strengthen Xiaomi's offering, provided the new devices find buyers and contribute to the bottom line — making the commercial reception as important to the valuation as the handsets themselves.
A week later, on November 24, the board is due to review and approve unaudited consolidated results covering both the third quarter and the first nine months through September 30, 2026. That print should give a clearer read on the profit weakness CLSA anticipates. Media reports suggest a recovery in the final quarter is possible, though the board's sign-off is still pending.
Auto Deliveries Top 50,000
On the vehicle side, the China Passenger Car Association has put exact figures on October. Wholesale deliveries of Xiaomi Auto reached 50,168 units, with retail sales at 50,123, according to the CPCA. Xiaomi Auto itself had initially said it shipped more than 50,000 vehicles in October without specifying a number, calling it the company's strongest month of the year.
The stock traded 1.2% higher today. Until the November 24 results land, the higher-price strategy remains Xiaomi's central argument — and the earnings behind the product lineup will decide how convincing it looks.
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