Huawei’s new phone won’t affect Xiaomi’s strategy, new flagship Mi 14 and EV next year remain positive catalysts – Citi Research
COMPANY NEWS VIEWS & ANALYSIS
Huawei’s new phone won’t affect Xiaomi’s strategy, new flagship Mi 14 and EV next year remain positive catalysts – Citi Research
COMPANY NEWS VIEWS & ANALYSIS

Huawei’s new phone won’t affect Xiaomi’s strategy, new flagship Mi 14 and EV next year remain positive catalysts – Citi Research

 

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Smartphone giant Xiaomi’s management was confident about its smartphone business in the second half of 2023 and the launch of its electric vehicles next year, said Citi Research in a note after Xiaomi’s investor meeting. 

While short-term uncertainty remains over Huawei’s launch of its flagship handset, Xiaomi new flagship Mi 14 smartphone in October and electric vehicles next year remain positive catalysts, it said.

Citi maintained its Buy rating on Xiaomi, with a target price of HK$15.7.

Xiaomi’s management said the launch of Huawei’s new phone has not caused any impact in the past few days, and believed that Huawei’s new phone is not targeting the same customer base, with Xiaomi continuing to increase its market share in the price range of 4,000 – 6,000 yuan.

Xiaomi’s overseas sales strategy will not be affected as the new Huawei devices cannot use Google’s mobile services, and Xiaomi’s shipments in China only account for 26% of its total shipments, lower than its peers, giving it less exposure to Huawei’s competition, it said.

Xiaomi smart car is undergoing final testing and optimisation, and will be launched in the first half of 2024, the management said. Confident of the competitiveness of its car, Xiaomi plans to invest $10 billion over the next 10 years, which will be used in a disciplined manner to enhance the profitability of its core business and support the development of its car business.