GreenergyDaily

Nov. 18, 2025

Xiaomi Corp. has gone from market darling to the worst-performing Chinese technology stock in just a few short months, and a quick comeback looks challenging amid headwinds in the smartphone and electric vehicle markets.

Xiaomi on Tuesday reported a 22.3% jump in third-quarter revenue to 113.1 billion yuan ($15.90 billion), while its adjusted net profit rose 80.9% year-on-year to 11.3 billion yuan. The compan's EV division, which sold its first car last year, posted a profit of 700 million yuan in the September quarter.

Rising memory-chip prices are expected to cut into Xiaomi’s margins on smartphones, and price hikes are difficult amid sluggish Chinese consumption and strong sales of Apple Inc.’s iPhone 17. Meanwhile, the company has been scrambling to increase its EV capacity to meet orders.

Higher memory costs “might be an overhang for longer,” said Xin-Yao Ng, a fund manager at Aberdeen Investments. Given its struggles with EV capacity, “there are concerns that auto delivery and thus revenue might not be as great as some investors might have hoped for.”

The feverish rally that had driven Xiaomi toward $200 billion in market capitalization as of June has rapidly faded. The Hong Kong-listed stock is down nearly 30% from a recent peak in September, ranking bottom on the Hang Seng Tech Index in that span.

In EVs, Xiaomi continues to expand deliveries and co-founder Lei Jun has said the division is targeting profitability this year. But the broader auto market is facing headwinds due to the phasing out of trade-in subsidies offered by local governments.