From the lowest level in June 2023, Xiaomi shares have increased more than 60%, equivalent to a capitalization increase of 20 billion USD on the Hang Seng Tech index (HSTECH).
According to Bloomberg, Xiaomi’s success is said to partly come from the failure of rival Apple in the Chinese market. Asia’s largest smartphone market is still slowly recovering after years of recession, with local manufacturers doing better than Apple. The recently launched Xiaomi 14 series has reached over 1 million pre-orders just a few days after being announced at the end of October. The launch of Mate 60 Pro in August was also a success for Huawei after many years.
In Xiaomi’s case, investor optimism is fueled by rumors that the brand is about to launch its first electric car as well as the artificial intelligence (AI) technologies the company is developing. According to analysts at JPMorgan, the company’s shares could continue to rise over the next six months. Analysts at Morgan Stanley and Citigroup also expect the Chinese smartphone market to prosper starting next year. On the other hand, the iPhone is losing popularity in China because many users simply do not see any progress in the technical characteristics of this year’s new products.
The Huawei Mate 60 Pro is notable for its unique camera capabilities and satellite communication in emergency situations, while the Xiaomi 14 series receives the latest Snapdragon 8 Gen 3 chip from Qualcomm, an advanced camera, and an operating system. operating system The HyperOS supports both the Internet of Things and vehicle ecosystems.
Analysts from Bloomberg believe that Xiaomi can surpass rivals Oppo and Vivo in its home market, while its popularity outside China is “very significant”. In addition to Xiaomi’s own shares, the shares of its suppliers and contractors are also rising.