Xiaomi's Two-Front Push: A Hardware Offensive Meets a Stubborn Share Price Slump
Published on 08/10/2026 at 03:51 | Redaktion boerse-global.de
The contrast could hardly be starker. Xiaomi's product pipeline is firing on nearly every cylinder — a new smartphone unveiled for international markets, smart-home devices entering India, tablets clearing certification in China, and an electric-vehicle lineup that just logged its fourth straight month of deliveries above 30,000 units. Yet the shares remain deep in the red, down 29.83% on the year and still 53.57% below their 52-week high.
That disconnect is the central tension shaping the stock heading into next week's second-quarter earnings report, scheduled for August 18. The market's skepticism stands in sharp relief to the operational momentum: Xiaomi EV confirmed its full-year delivery target of 550,000 vehicles for 2026, a roughly 34% jump from the prior year should the company hit it. Through the first half, however, the EV division has reached only about 34% of that goal — a gap that has weighed on investor sentiment despite the steady monthly delivery cadence.
A Product Blitz Across Three Fronts
The company's diversification strategy is accelerating on multiple tracks simultaneously. Xiaomi officially unveiled the Redmi 17 smartphone, with the company stating an international market launch is imminent. The announcement follows a flurry of activity: Xiaomi India introduced its Mijia lifestyle sub-brand on Friday, starting distribution with a new air purifier model, while the flagship Xiaomi Pad 9 Pro and Pad 8s Pro tablets received Chinese 3C certification on Wednesday — a regulatory step that typically precedes a launch. Meanwhile, the August 2026 Android security patch began rolling out on August 1, reaching 58 devices running the company's HyperOS 2 and HyperOS 3 operating systems.
The EV division's product mix is also shifting. The YU7 SUV has emerged as the volume leader with 104,559 deliveries, overtaking the SU7 sedan, which logged 80,496 units in the same period. The company's half-year figures, published August 1, underscore how the SUV has become the growth engine within the broader EV push.
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The SkyNomad Gambit
To close the gap on its ambitious annual delivery target, Xiaomi is leaning on its second vehicle series. The SkyNomad lineup — two large SUVs unveiled in Beijing on July 30 — is now open for pre-orders, with Chinese media estimating more than 100,000 reservations already placed. Pricing starts at 259,900 yuan (around €34,000) for the five-seat N70 Max and 299,900 yuan (roughly €39,200) for the seven-seat N90 Max. That undercuts Tesla's six-seat Model Y L, which sells for 339,900 yuan in China. Deutsche Bank called the pricing aggressive, attributing it directly to the volume pressure Xiaomi faces. The first major public showcase arrives August 21 at the Chengdu Auto Show, where the question of whether SkyNomad can deliver the needed incremental volume will come into sharper focus.
Longer term, Xiaomi has its sights set on Europe. Overseas sales are slated to begin in Germany in the second half of 2027, supported by a Munich development center opened in 2025 that has attracted engineers from BMW, Porsche, Mercedes-Benz and Lamborghini.
Earnings Expectations and a Handset Squeeze
The August 18 report will be the key test. Eleven analysts on average expect quarterly earnings per share of 0.225 yuan on revenue of roughly 116.84 billion yuan. But the outlook is clouded by a deliberate strategic shift in the smartphone business. China International Capital Corporation, which reaffirmed its "Outperform" rating on August 3, projects second-quarter revenue of 107.14 billion yuan — a 7.6% decline — with adjusted net profit falling nearly 43.6% to 6.114 billion yuan. The driver, according to CICC, is a conscious reduction of older smartphone models and budget entry-level devices, pushing the average selling price to a record 1,340 yuan.
Morgan Stanley struck a more optimistic note on July 31, maintaining its "Overweight" rating on expectations of strong smartphone shipment volumes and a robust gross margin, with total revenue expected to exceed 100 billion yuan.
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Buybacks and Technical Pressure
The share price story is equally layered. After the July delivery announcement, the stock fell 2.85% in Hong Kong to HK$27.96. The slide extended into early August, with the shares touching HK$26.40 by August 7 — an 18% decline from the June high, even as operational delivery figures remained solid. A so-called mini death cross formed on the charts, with the 50-day and 100-day moving averages crossing, and technicians now eye HK$21.4 as the next support level. In German trading, the stock closed Friday at €3.04, up 2.13% on the day — a modest bounce that does little to offset the year-to-date decline.
Management has been buying into the weakness. Between June 3 and July 15, the company repurchased shares in fourteen tranches totaling approximately HK$100.7 million, with the most recent purchases around HK$25.82 per share. That brings cumulative buybacks to roughly 79.8 million shares under a June mandate authorizing the acquisition of up to 2.58 billion shares. A lock-up period restricting new share issuance following these purchases runs until August 14 — just days before the earnings release that investors hope will resolve the tension between what Xiaomi is building and what its stock is saying.
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