India's Serious Fraud Office has recommended Xiaomi be investigated for alleged irregularities in its business model and compliance with foreign investment law, potentially intensifying scrutiny of the smartphone maker, a government document shows.
China's Xiaomi (1810.HK) was once India's top-selling smartphone brand but has seen its market share dwindle amid intense competition from Apple and Samsung. It is also battling several tax demands and royalty payment disputes.
The recommendation from India's Serious Fraud Investigation Office (SFIO) said the investigation should examine movement of funds and whether Xiaomi sought mandatory investment approvals as required after India tightened scrutiny of Chinese investments following deadly border clashes between the two nations in 2020.
A person familiar with the matter said the government is examining the memorandum, which was drafted in May and reviewed by Reuters.
The revelation comes ahead of Chinese President Xi Jinping's expected visit to attend a BRICS summit in India at the weekend.
"The most important part of the proposed investigation should be examination of the beneficial ownership of foreign investors and group entities," the memorandum said.
"The investigation should verify whether any direct or indirect beneficial ownership, control, or change in control was disclosed and approved as required...It is recommended that a detailed SFIO investigation be undertaken."
In a statement to Reuters, a Xiaomi spokesperson said the company has not received any notice or communication from the SFIO, adding: "We accord paramount importance to the laws of the land and comply with them fully at all times."
A spokesperson for SFIO's parent, the Ministry of Corporate Affairs, and the SFIO, did not respond to queries.
The SFIO is India's main agency that looks into corporate fraud and has powers to arrest and prosecute offenders. Its proposal for Xiaomi Technology India Private Limited and its related entities is pending approval from its parent ministry, which is a standard process in such cases.
"There is no timeline in such cases for the ministry to decide - it can take months. The ministry may not find enough to proceed or can allow SFIO to start the probe. It can also ask other departments to look into the matter," said Meghav Gupta, founder of Indian law firm Consecro Law.
The stricter foreign investment rules introduced in 2020 required prior government approval for any investment made by a Chinese entity in India, which businesses, including Xiaomi, had said caused delays.
Earlier this year, India's government relaxed some of the restrictions, as New Delhi and Beijing have been working on maintaining peace at the border. Xi's expected visit is viewed as an effort to further stabilise relations.
XIAOMI'S MANY CHALLENGES IN INDIA
For Xiaomi, an SFIO investigation could be another setback. It has been unsuccessful in overturning the financial crime- fighting agency's 55.51 billion rupees ($584 million) freeze of its Indian bank assets since 2022 for alleged illegal remittances, which it denies.
Xiaomi has slid to fourth place in India's smartphone market with a 13% share, a drop from 19% it commanded earlier, according to Counterpoint Research. Its India revenue in 2025 stood at $2.52 billion, 40% lower than recorded three years ago.
The SFIO proposal said the agency was recommending action against Xiaomi based on complaints and inputs received via the government's commerce ministry, which also did not respond to Reuters queries. SFIO also called for "coordination" with other government agencies, saying overlapping violations will be correlated.
The memorandum did not elaborate on the information SFIO had reviewed, but laid out a 21-point investigation framework with scope, methodology and plan of action, including possible summoning of company executives if required.
Financial statements and auditor reports filed with the Indian government should "be tested for material misstatement", SFIO said, adding that statements of current and former directors, CFOs and compliance officers should also be recorded.
E-COMMERCE SCRUTINY
Brands like Xiaomi have become hugely popular in India through online sales of their products on Amazon (AMZN.O) and Walmart's Flipkart.
But small brick-and-mortar retailers have repeatedly accused the two e-commerce companies of entering into exclusive pacts with sellers, which is prohibited under India's Foreign Direct Investment (FDI) laws, saying it hurts the smaller offline businesses. Amazon and Flipkart deny the allegations.
In 2024, India's antitrust agency alleged that Xiaomi was among smartphone companies which colluded with the two e-commerce companies to exclusively launch products online, breaching competition laws, Reuters has reported. Xiaomi has not commented on the matter.
The SFIO investigation proposal calls for further scrutiny of Xiaomi on the subject, saying it should be assessed if it had "de facto control" over Indian sellers or launch partners, but represented those arrangements as operating at arm's length.
"The inquiry should specifically cover whether preferential and exclusive launches of Xiaomi products on selected e-commerce platforms .... defeated the intent of the FDI policy applicable to e-commerce (companies)," SFIO said.
From 2026–2030, Xiaomi plans $29B in R&D, prioritizing custom AI, chips, and OS to enhance its Human x Car x Home ecosystem and segment competitiveness. Smartphone and IoT segments are expected to benefit most from R&D, with rapid AI and chip innovation sustaining Xiaomi's performance and ecosystem leadership. Capex and R&D will increasingly target Smart EV, AI, and New Initiatives, leveraging high-growth opportunities, while competition from Samsung remains a key risk.
China's top memory chipmaker, CXMT (688825.SS), will supply its latest LPDDR6 DRAM chips for Xiaomi's upcoming flagship folding phone, the companies said on Saturday.
ChangXin Memory Technologies has started mass production of LPDDR6, which will supply Chinese smartphone maker Xiaomi's new foldable phone 18 Fold, CXMT posted on China's Weibo social media platform. LPDDR6 arrived less than a year after CXMT mass-produced the previous generation of LPDDR5 chips.
Xiaomi, one of the world's largest smartphone makers, confirmed the plan on its official Weibo account. The companies said the new foldable phone will be released in September.
LPDDR6 is CXMT's most advanced Dynamic Random-Access Memory chip for mobile devices, narrowing the company's technology gap with China's top DRAM maker and global peers such as Samsung and SK Hynix.
Xiaomi said this week the upcoming folding phone is expected to use a new version of the company's in-house 3-nanometre handset processor Xring O3, which would support LPDDR6.
On Friday, CXMT posted a sharp turnaround to profit in the first half in its first earnings release since listing, while revenue spiked 874% from a year earlier to 150.3 billion yuan ($22.36 billion).
The Hefei-based company said it had shipped to customers samples of its LPDDR6 DRAM chips, which are to be used on mobile devices, servers and smart cars - to customers.
Also on Friday, CXMT sued the Pentagon over being placed on a list of companies the U.S. says are aiding China's military. The Pentagon declined to comment on ongoing litigation.
Chinese smartphone maker Xiaomi (1810.HK) on Monday unveiled a new version of its in-house Xring handset processor, betting that deeper control over key components will help strengthen its supply chain and reduce reliance on external chip suppliers.
The introduction of Xring O3 comes a year after Xiaomi launched its first proprietary smartphone processor, the Xring O1, marking the latest step in the world's third-largest smartphone vendor's push to join rivals such as Apple (AAPL.O), Samsung Electronics (005930.KS) and Huawei in developing its own chips.
TSMC (2330.TW) will manufacture the new chip using its 3-nanometre production technology, two people familiar with the matter said.
One of the sources said the chip is expected to power Xiaomi's upcoming flagship folding phone, with a shipment target of 200,000 to 300,000 units.
Xiaomi's expansion into foldable phones, a more expensive segment of the market, could challenge leading domestic player Huawei.
Huawei shipped 1.6 million foldable phones in China in the second quarter, giving it a 68% market share, followed by Honor with 13.7% and Oppo with 8.5%, according to research firm Smart Analytics Global.
The people declined to be identified because the plans are not public. Xiaomi and TSMC did not immediately respond to requests for comment on the chip's manufacturer, production technology or shipment targets.
Smartphone processors, or system-on-chips (SoC), integrate computing, graphics, AI processing and imaging functions into a single component.
DEVICE MAKERS PUSH FOR IN-HOUSE CHIPS
Xiaomi's chip push reflects a broader industry trend as device makers seek to differentiate products and lessen dependence on suppliers such as Qualcomm (QCOM.O) and MediaTek (2454.TW) amid intensifying competition in premium smartphones.
Xiaomi said during an earnings call last week that cumulative shipments of devices powered by the Xring O1, including smartphones, tablets and watches, had surpassed 1 million units since its launch.
Xiaomi has sold about 150,000 smartphones based on the Xring O1 chip since its May 2025 launch, according to the sources.
MEMORY COSTS PUSHING UP PRICES
Smartphone makers are contending with a global downturn in device sales, as memory and component costs push up prices and squeeze demand.
Xiaomi sold 65 million handsets in the first half of 2026 at an average price of 1,329 yuan ($197.74), compared with 84 million units sold at an average price of 1,141 yuan in the same period of 2025 and 83 million units at 1,123 yuan in 2024, according to data from Visible Alpha by S&P Global.
Global smartphone shipments are expected to decline 14% in 2026, according to research firm International Data Corporation.
Xiaomi said on Monday it had also contracted TSMC to manufacture two other Xring chips: the Xring O100, a 6-nm neural processing unit that will support Xiaomi's large language model, MiMo, on consumer electronic devices, and the Xring D100, a 3-nm chip for autonomous driving.
According to Xiaomi, the O3 has already entered mass production, while the O100 and D100 have completed development and are slated for deployment next year.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Buy TSMC. If Samsung’s semiconductor price hike spreads to other foundry supply chains, customers may front-load orders and lock in capacity, supporting utilization and pricing power. Even if smartphone volumes are weak, AI-driven demand and higher wafer pricing can offset handset softness. TSMC is the cleanest way to own the “higher chip prices” effect without betting on Xiaomi’s execution.
Key Risk: AI/semiconductor demand cools or customers successfully renegotiate lower wafer pricing, crushing pricing power and utilization.
Xiaomi (1810.HK)
Sell Xiaomi. Q2 shows shipments -26.3% YoY, revenue -6.1% YoY, and gross margin 19.8% vs 22.5%—clear demand weakness plus cost pressure. The article flags chip/memory price hikes as a continuing headwind, so the “turnaround” is likely slower than the market is pricing. Technicals back it: below 50/100-week EMAs and a rebound that looks like a dead-cat bounce; next downside magnet is HKD 21.44.
Key Risk: Chip prices fall fast and Xiaomi regains shipment growth and margins in the next 1–2 quarters, forcing a re-rating.
Xiaomi share price has crawled back this week, moving from a low of HKD 25.32 on August 18 to the current HKD 28.45. This rebound happened after the company published its financial results, which demonstrated the lingering weakness in its business.
China’s Xiaomi has become a major player in the smartphone and electric vehicle markets. It is the third-biggest smartphone company in the world after Apple and Samsung, while its EV brand is growing substantially in China.
The challenge, however, is that the company relies on memory and chips from other companies. These products have seen their prices surge in the past few months as the artificial intelligence boom has intensified.
This, in turn, has pushed it to hike prices, which is affecting its growth. The most recent results showed that its smartphone shipments stood at 31.2 million units in the second quarter, down by 26.3% from a year earlier. In contrast, Apple’s shipments rose by 5.3% to 60.5 million, while Samsung’s rose by 23% to 55.1 million. Its weakness was worse than other brands like OPPO and Vivo.
The results showed that its revenue dropped to 108.9 billion yuan in Q2 from 116 billion in the same period last year. Its smartphone and IoT segment made 84 billion yuan, down from 94 billion a year earlier. This slowdown was offset by a slight increase in its electric vehicle revenue, which rose to 24.9 billion yuan.
Xiaomi’s margins also continued falling, with the gross figure dropping to 19.8% from the previous 22.5%. The net profit fell to 6.2 billion yuan from 10.8 billion yuan in the same period last year.
The unfortunate aspect is that Xiaomi’s business will remain under pressure in the foreseeable future as chip prices continue rising. In a statement, Samsung said that it would hike the price of semiconductor manufacturing. While Samsung does not make Xiaomi’s chips, the announcement means that other firms like TSMC and MediaTek may decide to do the same.
Therefore, Xiaomi’s investors will likely have to accept the ongoing challenges and the fact that its turnaround will take longer than expected. This explains why its valuation multiples have improved, with the price-to-earnings ratio falling to 16, much lower than Apple’s 35.
Xiaomi chart | Source: TradingView
The weekly chart shows that the Xiaomi share price has been in a steep decline in the past few years, moving from the year-to-date high of HKD 61.5 to the current HKD 28.45. It has dropped below the 61.8% Fibonacci Retracement level.
The stock has remained below the 50-week and 100-week Exponential Moving Averages (EMA), a sign that bears remain in control. Therefore, for now, there are signs that the ongoing rebound is a dead-cat bounce, which is a brief rebound that is followed by a retreat.
If this happens, the next key level to watch will be the year-to-date low of HKD 21.44. A drop below that level will point to more downside over time.
Kingsoft Cloud Holdings Limited delivered a strong Q2 '26, with revenues up 30.8% y/y and significant margin improvement, reversing Q1's weakness. KC's AI cloud services, driven by a Xiaomi partnership, saw gross billings surge 82% y/y, establishing AI as the main growth engine. Cash flow from operations soared to $420m, supporting a manageable debt load and positioning KC near break-even profitability.
China's Xiaomi Corp (1810.HK) posted a fall of 42.6% in second-quarter net profit on Tuesday, missing analysts' estimates, as higher costs of memory and other components squeezed margins for the maker of smartphones and electric vehicles.
Adjusted net profit of 6.2 billion yuan ($919.50 million)for the period from April to June, fell short of an average analyst estimate of 6.6 billion yuan, according to LSEG data.
"Significant increases in key component costs, including memory, along with intensified industry competition, continued to create headwinds for our business," Xiaomi said in its earnings statement.
Second-quarter revenue came in at 108.9 billion yuan, it added, missing the average estimate of 112.2 billion.
Xiaomi's smartphone revenue fell 7.5% year-on-year to 42.1 billion yuan, while its smartphone gross margin declined to 8.5% from 11.5% a year earlier, clipped by higher prices for key components.
The world's No. 3 smartphone maker, Xiaomi shipped 31.2 million smartphone units in the quarter, down 26% from a year ago, for a second consecutive quarter of decline, research firm Omdia said.
With more than half its shipments priced below $200, Xiaomi was the most exposed among the top five smartphone vendors to memory cost inflation, Omdia has said.
Xiaomi is investing heavily in electric vehicles and artificial intelligence as it seeks new growth drivers beyond its increasingly saturated core business of smartphones.
The domestic car market has been in steady decline since late 2025, while other Chinese carmakers are aggressively expanding exports. Xiaomi plans to enter European markets in 2027.
Revenue stood at 23.9 billion yuan from its EV business in the second quarter, up 15.9% from a year earlier. The loss from operations related to its EV, AI and other new initiatives was 2.6 billion.
Xiaomi delivered 104,199 vehicles in the second quarter, up 28.2% from a year earlier.
In July, Xiaomi launched a new SUV series SkyNomad, expanding beyond battery-powered sedans and crossovers into a category popularised by models from Chinese peers.
Xiaomi continues to face headwinds, with pricier memory chips pressuring smartphone margins, and reduced subsidies adding to already subdued consumer demand.
BEIJING — Survivors have emerged in China's fiercely competitive car market, which is increasingly dominated by electric-powered vehicles.
Here are brands that have emerged as Chinese consumers' favorite, according to industry data from Autohome:
1. Geely ranks firstAmong the 10 most popular car models sold in China in the six months through July, Geely's Xingyuan electric hatchback was the bestseller with nearly 197,500 units sold.
The price? Just under 100,000 yuan ($14,820).
Geely has emerged as a close rival to BYD, ranking second by overall China sales volume in 2025. The Hangzhou-based company still sells gasoline-powered cars in addition to electric vehicles, such as those sold under its premium brand Zeekr.
2. Tesla keeps sellingThe company's Model Y ranked second in popularity with more than 180,000 of the electric SUVs sold. The Tesla car comes at a steeper price tag of 263,500 yuan to 313,500 yuan, but that didn't stop it from topping sales of Li Auto's i6 SUV and Xiaomi's SU7 sedan.
3. BYD barely makes top 5Three of the 10 best-selling cars, as per Autohome data from February through July, were from BYD. But the most popular one — a modestly priced Yuan UP SUV — just managed fifth place with nearly 97,700 units sold. In sixth place was the Ti 7 under BYD's off-road brand, followed by its Sealion 06 SUV.
The Chinese car giant reported its passenger car sales dropped by more than 10% in the first half of the year.
4. VW holds onThe German automaker was the only traditional foreign car company to make the top 10 — with its compact gasoline-powered Lavida in ninth place, squeezed between Leapmotor's A10 electric SUV and Geely's gasoline-powered Boyue L SUV.
5. Electric dominatesNew energy vehicles, which include battery and hybrid-powered cars, accounted for 65.1% of new passenger cars sold in July — up from 54% a year ago, according to China Passenger Car Association data released Tuesday.
But the category still saw sales for the year through July drop by 12.5%, as passenger car sales overall tumbled by 20.3%, industry data showed.
Xiaomi stock has pulled back in the past few days, erasing some of the gains made in July. It dropped to H$26.40 in Hong Kong, down by 18% from its highest level in June. This sell-off continued even after the company announced strong vehicle deliveries numbers. It recently formed a shooting star candle on the weekly chart, pointing to more downside ahead of its earnings.
Xiaomi, the top Chinese technology company, announced strong vehicle delivery numbers earlier this month. It delivered over 30,000 vehicles in in July, making it one of the biggest and fastest-growing EV companies in China.
It was the fourth consecutive month in which the company delivered over 30k vehicles a month. It delivered 185k vehicles in the first half of the year, up by 17.18% YoY.
The company hopes to boost these deliveries this year by launchig more vehicles. It recently launched the SkyNomad vehicle, a huge SUV that starts selling between $38,000 and $44,000. Recent data shows that the vehicle has already received over 100,000 reservations.
Despite this progress, Xiaomi stock has dropped, mirroring the performance of other Chinese EV stocks. Nio stock has plunged despite its strong revenue and delivery growth. Other Chinese EV stocks like XPeng and Li Auto have been in a strong downward trend as well.
Meanwhile, the company’s smartphone business is facing substantial challenges as memory prices surge. A recent report by Omdia showed that the global smartphone market dropped in the second quarter, while Apple and Samsung jumped.
Xiaomi maintained the third share of the smartphone market with a 11% share. Its share was 15% a year earlier. In contrast, Samsung’s share rose to 22% from 20%, while Apple’s jumped from 16% to 20%.
The same metrics were visible in Xiaomi’s earnings report. These results showed that its revenue dropped to 99.1 billion RMB from 111.2 billion RMB a year year. Similarly, the profit before tax (PBT) plunged from 13.1 billion RMB to 5.7 billion RMB in the same period.
Xiaomi’s two segments dropped during the period. Its smartphone and AIoT revenue dropped to RMB 79.2 billion from 92.7 billion, while the smart EV, AI, and other initiatives fell to RMB 19.8 billion.
Unfortunately, the challenges that Xiaomi experienced in the first quarter still remain. Memory and chip prices continue soaring. Just recently, Qualcomm, a top supplier, announced that it would increase the prices of its chips. Similarly, companies like SK Hynix, Samsung Electronics, and Micron have all boosted their memory prices.
Xiaomi stock chart | Source: TradingView
The weekly chart shows that the Xiaomi share price has dropped sharply in the past few years. It has dropped from a high of H$61.55 in June 2025 to the current H$26.18.
The stock formed a shooting star pattern last week. This pattern is made up of a small body and an upper shadow.
Xiaomi has also formed a mini death cross pattern as the 50 and 100 Exponential Moving Averages (EMA) crossed each other. Therefore, there is a likelihood that the stock will drop further in the near term, potentially to the key support level of H$21.4, its lowest level in June. A drop below that level will point to more downside.
Item 1 of 5 A woman takes photos of a Xiaomi SkyNomad N90 Max EREV (Extended-Range Electric Vehicle) on display before the car's launch event, in Xiaomi's industrial park, in Beijing, China July 30, 2026. REUTERS/Tingshu Wang
[1/5]A woman takes photos of a Xiaomi SkyNomad N90 Max EREV (Extended-Range Electric Vehicle) on display before the car's launch event, in Xiaomi's industrial park, in Beijing, China July 30, 2026.... Purchase Licensing Rights, opens new tab Read more
CompaniesBEIJING, July 30 (Reuters) - China's Xiaomi (1810.HK), opens new tab launched an SUV series dubbed SkyNomad on Thursday, expanding its EV lineup into the large-family SUV segment, as it seeks to boost sales in the country's ultra-competitive auto market ahead of a planned European launch next year.
With the SkyNomad, Xiaomi is hoping to boost vehicle deliveries after first-half EV sales reached only about one third of its annual target, and as consumer demand softens in the world's largest car market amid a sluggish economy.
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Xiaomi, which also makes smartphones and home appliances, has positioned SkyNomad as an "intelligent, reconfigurable, large-space SUV", contrasting it with the SU7 sedan and YU7 SUV series that focus on driving dynamics.
For Xiaomi, whose EV business has become an increasingly important source of revenue over the last two years, SkyNomad represents a push into China's family SUV market.
GASOLINE ENGINE HELPS EXTEND RANGEThe flagship N90 Max, a seven-seat SUV that Xiaomi describes as "a house you can move", combines a 76-kilowatt-hour battery with a 1.5-liter turbocharged range extender and a 60-liter fuel tank.
Extended-range electric vehicles, or EREVs, are driven primarily by electric motors and use a gasoline engine as an onboard generator to recharge the battery or sustain electricity supply when needed.
"Six seats are not enough for families ... If we compare a vehicle to a house, we can freely arrange our space and decorate," Xiaomi CEO Lei Jun said at its launch event.
Xiaomi said the N90 Max, priced at 299,900 yuan ($44,397), has a combined range of up to 1,705 km (1,059 miles).
The SkyNomad line is built on Xiaomi's new Kunlun architecture, which the company says was developed specifically for larger SUVs with adaptable cabins.
Xiaomi will take pre-orders starting from Thursday and bring the vehicles to market in September, Lei said.
($1 = 6.7550 Chinese yuan renminbi)
Reporting by Ju-min Park and Qiaoyi Li; Editing by David Holmes
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Ju-min Park is a senior correspondent for Reuters based in Beijing, covering the automobile industry. She began her career at Reuters since 2010 and previously reported on the Korean peninsula and Japan.
Item 1 of 2 The logo of Xiaomi appears on a new‑generation SU7 electric sedan ahead of a launch event in Beijing, China, March 19, 2026. REUTERS/Maxim Shemetov/File Photo
[1/2]The logo of Xiaomi appears on a new‑generation SU7 electric sedan ahead of a launch event in Beijing, China, March 19, 2026. REUTERS/Maxim Shemetov/File Photo Purchase Licensing Rights, opens new tab
CompaniesBEIJING, July 17 (Reuters) - A Chinese blogger has been given 20 months in prison for fabricating negative claims about the safety of Xiaomi's SU7 electric sedan, state media reported on Friday.
Since last year, authorities have stepped up efforts to curb false advertising, online misinformation and other irregular practices in the fiercely competitive auto industry amid concerns that misleading claims could distort consumer perceptions and competition.
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Bloggers and online platforms accused of smearing automakers or spreading misleading information have also been targeted.
The blogger, identified as Gao, was found guilty by the Haidian District People's Court of damaging the reputation of goods by fabricating false facts and intentionally harming the reputation of car maker Xiaomi (1810.HK), opens new tab, the Beijing Daily reported.
He was also fined 100,000 yuan ($14,800).
In August 2024, Gao and his team released a crash-test video appearing to show that the doors of Xiaomi's best-selling SU7 failed to open after a collision. The video also appeared to show that the vehicle's emergency call system did not activate and its central control screen failed to light up, according to Chinese media reports.
The clip, posted on Gao's video-sharing account with about 1 million followers, went viral, drawing roughly 3 million views.
The court found that Gao and his team had covertly tampered with the vehicle's auxiliary battery before filming and used footage of a battery damaged by a forklift to mislead viewers, the Beijing Daily report said.
In January 2025, Xiaomi said that "a blogger and his accomplices who previously maliciously smeared Xiaomi Auto have been arrested according to law".
Calls to Haidian District court and the blogger went unanswered.
($1 = 6.7717 Chinese yuan renminbi)
Reporting by Reuters staff; Editing by Miyoung Kim and Kevin Liffey
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Xiaomi stock retreated for two consecutive days after a report confirmed that the company was losing market share in the smartphone industry. It slipped to H$25.82 in Hong Kong, a few points below this month’s high of H$26.70.
A report released by Omdia showed that Xiaomi’s woes mounted in the second quarter, a situation that may lead to weaker revenue and profitability growth.
Xiaomi’s market share dropped to 11%, making it the third-biggest player in the industry after Samsung and Apple. Its share has been in a slow downward trend after peaking at about 15% in the second quarter of last year.
In contrast, Samsung became the biggest smartphone maker in the world with a share of 22%, while Apple has 20%. The report noted that the delayed launch of Samsung S26-series pushed some demand into the second quarter. Samsung also gained ground in the budget segment.
Apple’s sales were boosted by iPhone 17, which delivered the strongest iPhone refresh and upgrade cycle in the company’s history.
Xiaomi’s market share retreat happened as vendors in the sub-$400 mass market shifted strategy. Instead of prioritizing volumes, they are now focusing on adjusting retail prices and in their premium segments. Rujan Bjorvovde, the Principal Analyst at Omdia, said:
“Managing the surging component costs is incredibly complex and unpredictable, with some vendors facing memory costing more than four to five times what they did a year ago.”
Xiaomi’s business is struggling as the memory crisis intensifies, with memory and storage costs accounting for about 60% of the bill of materials for budget devices. Sadly, there is still no end in sight for this memory crisis, with Apple warning that it will hike prices for its next models.
The most recent earnings report showed that the company’s revenue and profits nosedived in the first quarter. Its revenue dropped to RMB 99.14 billion from RMB 111.29 billion in the same period last year. Smartphone revenue slipped by 10% to RMB79.3 billion.
On the positive side, the smartphone revenue decline was offset by a modest increase in its smart EV, AI, and New Initiatives segment. This segment’s revenue rose by 6.9% to RMB 19.9 billion, helped by more vehicle sales and offset by lower prices. It delivered 80,856 vehicles in Q1, up from 75,869 in the previous quarter.
Its profitability remained under pressure, with the profit for the period dropping to RMB 4.7 billion from the previous RMB 10.89 billion. These dynamics likely continued in the second quarter as its smartphone sales dropped.
Xiaomi stock chart | Source: TradingView
The weekly chart shows that the Xiaomi stock has been under pressure in the past few months as challenges in its business continued. It plunged from H$61.45 in June last year to the current H$25.82.
The stock has slumped below the 61.8% Fibonacci Retracement level, where most rebounds normally happen. It has remained below the 50 and 200 moving averages.
Therefore, the most likely forecast is bearish as traders wait for its next earnings report, which is expected in August. If this happens, there is a risk that it will drop and retest the support of H$21.35.
The logo of Xiaomi appears on a new‑generation SU7 electric sedan ahead of a launch event in Beijing, China, March 19, 2026. REUTERS/Maxim Shemetov/File Photo Purchase Licensing Rights, opens new tab
CompaniesBEIJING, July 9 (Reuters) - China's Xiaomi (1810.HK), opens new tab on Thursday unveiled an SUV series named Sky Nomad, accelerating the technology company's push into automobiles as growth slows in its mainstay smartphone market.
The extended-range electric vehicle (EREV) series, branded Xiaomi Pengcheng in Chinese, will comprise "smart, versatile, spacious" SUVs, CEO Lei Jun said on his Weibo micro-blog account along with a teaser poster of one of the vehicles.
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EREVs are a type of plug-in hybrid that sit between conventional petrol-electric hybrids and battery-only vehicles, using a combustion engine as a generator to extend battery driving range.
Xiaomi's announcement represents expansion beyond battery-powered sedans and crossovers into a category popularised by models from automakers such as Li Auto (2015.HK), opens new tab.
With its SU7 sedan and YU7 crossover, Xiaomi's EV business has become a revenue pillar over the past two years.
The consumer electronics firm expanded into cars in search of new revenue drivers as growth slowed worldwide in the mature smartphone and home appliance markets.
However, the auto business remains costly for the tech firm due to the heavy investment needed and narrower profit margins.
Xiaomi pitches its cars as a high-tech Chinese alternative to models from Tesla (TSLA.O), opens new tab, pitting its SU7 and YU7 lines against the U.S. EV maker's Model 3 and Model Y.
As of the end of June, Xiaomi had delivered 258,232 YU7 crossovers in China since the model's June 2025 launch, compared with 471,207 Model Y vehicles sold in the country over the same period, showed data from auto information and trading platform DCar.
Xiaomi has locked-in orders for existing models but faces a slowing domestic market and has yet to export its vehicles, unlike many domestic peers. The company plans to launch vehicles in Europe next year.
"They (car owners) want their car to be a second home. For them, a car is not merely a means of transport but another moving space," Lei said.
Reporting by Ju-min Park and Qiaoyi Li; Editing by Christopher Cushing
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Hong Kong-listed shares of Chinese electric vehicle makers surged Thursday after June delivery figures buoyed investor sentiment, with BYD gaining around 9% and Xiaomi climbing about 5%.
Xiaomi reported its third consecutive month of having over 30,000 deliveries in June. The company's shipments from January to June totaled over 180,000 units, representing about 33% of its 2026 delivery target of 550,000 units, according to Citi.
Xiaomi share price
Citi said Xiaomi's shares could rebound in August with the launch of its YU9 luxury sport utility vehicle.
"Any sign of memory peaking given more capex announcement from global Chinese memory makers could be positive to Xiaomi shares," it added.
Meanwhile, BYD posted a vehicle sales volume of 403,472 units in June, up 5.46% from 382,585 units in the same period a year ago.
Deutsche Bank said BYD's second-quarter sales volume rose 58% from the previous quarter to 1.1 million units.
"We forecast the company's quarterly net profit to increase 145% QoQ to RMB 10 billion in the second quarter," according to a note by Deutsche Bank.
As enterprise AI agents take on increasingly complex, long-horizon tasks, their performance is often restricted by their harness, the software scaffolding that connects the backbone LLM to its environment. Currently, harnesses are largely static and hand-crafted.
Xiaomi stock price has suffered a major reversal in the last 12 months, moving from a high of H$61.55 to H$22.62 today, its lowest level since September 2024, with its market cap falling from H$1.53 trillion ($192 billion) to $74 billion. This retreat has happened amid the soaring memory prices and the ongoing retreat in EV stocks.
Xiaomi, a company often compared with Apple, has dropped sharply this year and is now hovering at its lowest level since 2024. This retreat has made it one of the worst-performing companies in the Hang Seng Index.
The company is facing some major challenges that are affecting its profits. The most notable one is the ongoing semiconductor and memory price surge around the world.
This is important because the company does not manufacture its own memory products. Instead, it uses products made by companies like SK Hynix, Micron, and Samsung Electronics. These companies have all seen a surge in memory demand, which has pushed their prices higher.
As a result, smartphone manufacturers are working on boosting their prices, which may affect their demand. Just last week, Apple became the first major company to say that it will hike prices for the next iPhones.
Xiaomi has also struggled because of its electric vehicle business. While its EV sales are rising, there are concerns that demand will wane after Beijing ended its subsidies earlier this year. All EV stocks have plunged sharply this year.
The most recent results showed that Xiaomi’s business is going in reverse gear. Its revenue dropped by 10.9% to RMB99.14 billion in the first quarter from the previous year’s RMB111.2 billion.
Its profitability metrics were worse. Its profit for the period declined by 56.5% to RMB4.7 billion, while the operating profit fell by 60% to RMB5.3 billion. These declines were mostly driven by the smartphone segment whose shipments dropped to 33.8 million units from 41.8 million in the same period last year.
READ MORE: Apple, Samsung warn of memory shortage in results: these stocks will benefit
The same slowdown is happening across its other segments. Vehicle deliveries dropped to 80,856 from 145,115 in the fourth quarter. Q4’s surge happened as customers rushed to buy ahead of the expiration of subsidies.
With its business slowing, the company has moved to financial engineering by reducing the number of outstanding shares. It bought 250 million shares valued at over H$8.4 billion.
Xiaomi stock price chart | Source: TradingView
The weekly chart shows that the Xiaomi share price has slumped in the past few months. This retreat happened after the stock formed a triple-top pattern at H$61.5 and a neckline at H$36. It has slumped below the 50-week Exponential Moving Average (EMA).
The stock has dropped below the 61.8% Fibonacci Retracement level, while the Relative Strength Index (RSI) moving below the oversold level. Therefore, the stock will likely continue falling, potentially to the key support of $19.86, the 78.2% retracement level.
Representative Gilbert Ray Cisneros, Jr. (Democratic-California) recently sold shares of Tri Pointe Homes Inc. (NYSE: TPH). In a filing disclosed on March 09th, the Representative disclosed that they had sold between $1,001 and $15,000 in Tri Pointe Homes stock on February 23rd. The trade occurred in the Representative's "150 MAIN STREET TRUST > BANK OF AMERICA"
Xiaomi founder and CEO Lei Jun speaks at the Chinese smartphone maker's launch event in Beijing, China May 22, 2025. REUTERS/Florence Lo/File Photo Purchase Licensing Rights, opens new tab
CompaniesBEIJING, March 19 (Reuters) - Chinese smartphone and electric vehicle giant Xiaomi (1810.HK), opens new tab will invest at least 60 billion yuan ($8.70 billion) in artificial intelligence over the next three years, CEO Lei Jun said on Thursday.
The announcement came a day after the company officially unveiled its new flagship AI model MiMo-V2-Pro, a large language model originally uploaded anonymously onto OpenRouter last week.
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The model has shot up the AI gateway platform's leaderboard rankings, so far processing more than 1.5 trillion tokens or units of data, a sign that it has been well received by developers worldwide.
Lei, speaking at a company event in Beijing, highlighted MiMo-V2-Pro's global reception, saying it would rapidly improve, and revealed Xiaomi's budget for AI research this year had exceeded the previously announced 16 billion yuan figure.
"So you will see that we will advance faster and faster in many core technologies," he said.
Xiaomi's increased investment in AI comes as competition in China's cutthroat chatbot space is being redirected to agents, which require far less prompting and can execute more complex tasks.
While AI chatbots in China have faced intense downward price pressures, particularly since DeepSeek's ascent in the past two years, tech firms are eyeing the much higher token consumption required by agents as a potentially new lucrative revenue stream.
MiMo-V2-Pro was created to handle agent workloads, according to Lei, as agent frameworks like OpenClaw take China by storm, prompting Chinese tech giants from Alibaba to Tencent to jump on the trend in the hopes of generating new streams of revenue.
"Developers around the world have commented that V2-Pro has a high IQ, also a high EQ, and crucially its task execution ability is both fast and accurate... underscoring its huge global impact," Lei said.
Lei also noted the youthfulness of the team behind MiMo-V2-Pro, boasting an average age of 25, and with over half of its members holding doctorate degrees or hailing from China's top two universities, PKU and Tsinghua. MiMo is led by ex-DeepSeek researcher and PKU graduate Luo Fuli, who was born in 1995.
($1 = 6.8998 Chinese yuan renminbi)
Reporting by Ju-min Park and Eduardo Baptista; Editing by Andrew Heavens and Jan Harvey
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Ju-min Park is a senior correspondent for Reuters based in Beijing, covering the automobile industry. She began her career at Reuters since 2010 and previously reported on the Korean peninsula and Japan.
Eduardo Baptista is a Senior Correspondent for Reuters based in Beijing, covering China’s technology, space, and automotive industries. He has led enterprise and investigative reporting on China’s military-linked companies, artificial intelligence and semiconductor supply chains, as well as macroeconomic and industrial policy. Baptista has reported from China for nearly a decade and holds a BA in History from the University of Cambridge.
Xiaomi is transitioning from a smartphone-centric business to a diversified digital goods and EV company, with EV deliveries tripling in 2025. Despite impressive EV execution and segment profitability, Xiaomi faces margin pressure in smartphones due to surging DRAM costs and subsidy phase-outs for appliances. Q4 2025 earnings are expected to show modest revenue growth (~7.5% Y/Y) and flat adjusted net income, with EV as the key growth engine.
Xiaomi reported a slump in quarterly net profit, caught between soaring memory-chip prices and subdued consumption in one of the world's largest consumer markets.
Xiaomi transitioning from smartphones to EV, physical robotics, and other AI initiatives can impact near-term revenue and earnings outlook. The smartphone's share of total gross profit has declined from 40.9% to 15.1% over the past two years, while the EV and AI segment has increased from 0% to 34.7%. Due to a spike in memory prices, the smartphone segment's gross profit has declined significantly, and management expects cost pressures to persist.
A Xiaomi SU7 Ultra electric vehicle (EV) is displayed during a media day for the Auto Shanghai show in Shanghai, China April 23, 2025. REUTERS/Go Nakamura Purchase Licensing Rights, opens new tab
CompaniesBEIJING, April 24 (Reuters) - Xiaomi, a well-known maker of smart consumer electronics in China, said on Friday that it had delivered 26,000 units of its upgraded SU7 series, which launched in March.
Xiaomi CEO Lei Jun told media at an event at the Beijing Autoshow that the company had received 60,000 locked orders as of April 23 for the new generation SU7 sedans and planned to launch its YU7 GT series at the end of May.
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With a huge following in China, the Chinese electronic giant is taking on Tesla and pursuing premium strategy in the EV market. It is planning to enter the European market next year, as its first overseas destination.
Reporting by Ju-min Park; Editing by Jacqueline Wong
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Hurtling around a race track outside Beijing, Xiaomi's SU7 Ultra is as disconcerting as it's quick. The company is preparing its expansion abroad, where it could pose a threat in the EV market.
Hurtling around a race track outside Beijing, Xiaomi's SU7 Ultra is as disconcerting as it's quick. The company is preparing its expansion abroad, where it could pose a threat in the EV market.
Across social media, influencers are hawking Chinese car brands like BYD, Xiaomi and Zeekr with luxury features, state-of-the-art tech and affordable prices. But they're forbidden fruit for inflation-weary Americans who can't have them just yet.
Across social media, influencers are hawking Chinese car brands like BYD, Xiaomi and Zeekr with luxury features, state-of-the-art tech and affordable prices. But they're forbidden fruit for inflation-weary Americans who can't have them just yet.
Xiaomi had a rough start to the year, posting another profit drop as the memory crunch, stiff competition and soft demand hurt its businesses, from smartphones to electric cars.
Xiaomi (XIACF, XIACY) is rated a buy, with a ~20x P/E offering improved margin of safety after a 30% stock decline. Despite an 11% top-line drop and margin pressure in Q1, XIACF's ecosystem and premium positioning strategies remain intact, supporting long-term growth. Smart EV and AI initiatives saw revenue growth, with the EV division poised for significant scale as Xiaomi targets 550k vehicle deliveries by 2026.
Components of Xiaomi SU7 on display at the Xiaomi booth during the Beijing International Automotive Exhibition (Auto China), in Beijing, China April 24, 2026. REUTERS/Tingshu Wang Purchase Licensing Rights, opens new tab
CompaniesBEIJING, June 11 (Reuters) - Chinese electric vehicle maker Xiaomi (1810.HK), opens new tab has filed with regulators to add an extended-range electric vehicle to its lineup, according to a notice from the industry ministry on Wednesday.
The addition is subject to regulatory approval following a public comment period through June 17.
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The late EV entrant, which has rapidly emerged as a strong rival to established brands including Tesla (TSLA.O), opens new tab, currently offers the battery-powered SU7 sedan and YU7 SUV.
Reporting by Qiaoyi Li and Ju-min Park; Editing by Alexandra Hudson
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Xiaomi's MiMo AI team has open-sourced MiMo Code V0.1.0, a terminal-native AI coding assistant that the Chinese electronics giant says outperforms Anthropic's Claude Code on key agentic coding benchmarks, especially on long-horizon, multi-step tasks (200+ steps) — at least, according to its own internal beta release and survey of 576 developers. It's also bundling limited-time free access to MiMo-V2.5, its multimodal flagship model with a million-token context window, requiring no registration to get started.
