Xiaomi’s Twin Product Offensive Meets Unrelenting Stock Slide as Profit Tumbles 43%

The chasm between technological ambition and market reality is rarely as wide as it is for Xiaomi right now. The Chinese electronics giant is simultaneously pushing two smartphone launches — a mid-range model in India and a cutting-edge foldable for global markets — yet its shares are mired dangerously near a 52-week low of €2.97. At €3.01, the stock has shed roughly a third of its value since January and is down nearly 50% over the past twelve months.

Two Fronts, Two Strategies

The first salvo lands in India on Wednesday, where Xiaomi begins selling the 17T, a device aimed squarely at the lucrative middle tier. Specs are heavily hardware-focused: a Mediatek Dimensity processor optimised for gaming, a 6,500 mAh battery with rapid charging, and a 50-megapixel main camera co-engineered with Leica. India remains a critical growth market, and a successful launch would help stabilise cash flows at a time when the company is pouring money into electric vehicles and artificial intelligence.

On a more aspirational front, Xiaomi is preparing its most ambitious handset yet — the MIX Fold 5. The flagship is set to become the first mainland Chinese device to use a fully homegrown 3-nanometre chip, the Xuanjie O3, which runs at over 4 GHz and is fabricated by TSMC. Xiaomi claims a 15% improvement in IPC and more than 30% higher peak performance over its predecessor. The chip is paired with the in-house HyperOS 4 operating system and the MiMo AI model. Industry sources expect the MIX Fold 5 to launch in July or August 2026. With Apple and Qualcomm both moving to TSMC’s 2nm process later this year, Xiaomi’s lead at the 3nm node may prove short-lived.

Should investors sell immediately? Or is it worth buying Xiaomi?

Financial Headwinds Dull the Narrative

Impressive as the product pipeline looks, the quarterly numbers paint a bleaker picture. Adjusted net profit slumped 43.1% year-on-year in the first quarter of 2026. Smartphone shipments fell 19% to 33.8 million units — the steepest decline among the world’s top five handset vendors, according to Omdia. Meanwhile, the electric vehicle business — including the SU7 and YU7 models — posted an operating loss of 3.1 billion yuan. Xiaomi’s research and development spend climbed 33.4% to 9.0 billion yuan in the same period, underscoring the cost of its vertical integration push.

Buyback Fails to Halt the Slide

Management has turned to share repurchases to shore up the stock. A new buyback programme worth up to 20 billion Hong Kong dollars (roughly €2.4 billion) took effect on 2 June, replacing a previous 14.6 billion HKD scheme. So far, the impact has been negligible. The share price remains stuck below €3.10, and the relative strength index sits at 35.7 — deep in oversold territory. A break below the €2.97 support level could trigger further technical selling.

The immediate catalyst is the 17T’s sales data out of India. A strong debut could provide the psychological lift needed to lift the stock off its lows. But with earnings in freefall and the premium segment still unproven, the market appears to be waiting for substance, not just headlines.

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