Xiaomi's Premium Smartphone Bet and EV Ramp-Off Face a Bruising Market
Published on 10/02/2026 at 10:31 | Editorial boerse-global.de
Chinese technology shares came under broad selling pressure on Friday, and Xiaomi was caught in the downdraft. The stock changed hands at EUR 2.74, down 3.4% on the day, with industry reports pointing to no company-specific trigger behind the move. The retreat extends a difficult stretch for the shares, which have now lost 37% since the start of the year as investors weigh the uncertain outlook for the hardware business in Xiaomi's home market.
Part of that caution stems from the smartphone unit itself, where the medium-term picture has done little to inspire confidence. Xiaomi is responding with a push upmarket. On 23 September it unveiled the Xiaomi 18 Pro and 18 Pro Max alongside other products, priced from ¥5,999 and ¥6,999 respectively. The strategy is aimed at stabilizing average selling prices and capturing more margin-rich customer segments. How buyers respond to the new generation will go a long way toward determining whether forecast revenue declines in the core business can be softened.
Electric Vehicles Take On a Bigger Role
The automotive division is emerging as a second pillar. Xiaomi reported that electric vehicle deliveries topped 40,000 units in September, marking tangible progress in its production ramp-up. Cumulative deliveries from January through September now exceed 286,000 vehicles. The Pengcheng model line contributed heavily to the latest monthly tally, reportedly surpassing 10,000 units in its first month of sales. Lei Jun is set to release the full first-month figures for the Pengcheng series on 7 October.
Even so, Friday's trading made clear that strong vehicle volumes alone cannot shield the stock from sector-wide trends. The 21st Century Business Herald reported losses across several Chinese technology names, Xiaomi among them, without citing a separate catalyst for the company.
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Analysts Split on Margins and Momentum
Market watchers are keeping a close eye on the profitability of Xiaomi's newer ventures. Citi expects the upcoming third-quarter 2026 results to mark the weakest quarter of the year. In the first half of 2026, the gross margin for the Smart EV, AI and other new initiatives segment stood at 19.6%, down from 24.9% a year earlier.
HSBC took a more constructive view on Wednesday, initiating coverage with a buy rating and a price target of HK$33.20. While costly memory chips are weighing on the smartphone business this year, the analysts anticipate an operating margin improvement beginning in the fourth quarter.
Hardware Expansion Continues
Alongside its vehicle ambitions, Xiaomi is broadening its traditional electronics lineup. On Wednesday the company introduced the Redmi Note 17 series in Nigeria, equipping the top-end Redmi Note 17 Pro Max 5G with a 10,000 milliampere-hour battery.
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The stock closed Thursday at EUR 2.83 and has shed 35% year-to-date. Investors are currently balancing near-term pressure from component costs against the gains in vehicle deliveries — a mixed picture that leaves the shares searching for firmer ground.
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