Xiaomi’s Stock Plummets Amid Weak Revenue Growth and Rising Costs

Xiaomi’s shares have tumbled to the bottom of the Hang Seng Tech Index, shedding 30% of their value since September. Investors are bracing for Tuesday’s earnings report, which Bloomberg predicts will reveal the slowest revenue growth the company has seen since 2023.

The selloff reflects mounting skepticism around Xiaomi’s Core ventures: smartphones and electric vehicles. Analysts are slashing price targets, short sellers are circling, and hedge funds are ramping up bearish bets. Factory delays, safety concerns, and tepid EV demand persist despite aggressive promotions.

Goldman Sachs notes short interest in Xiaomi’s Hong Kong-listed shares has climbed to 0.7% of free float, up from 0.4% in July. Meanwhile, smartphone margins are under pressure as mobile DRAM chip prices surge—up 21% in October, with another 10% hike expected next quarter, according to HSBC.

JPMorgan analyst Gokul Hariharan warns, “We are still in the midst of a memory supercycle… margin pressures will intensify as cost increases cannot be fully passed to consumers.” Compounding the challenge, Chinese consumers are tightening spending while Apple’s iPhone 17 dominates market shelves.