How Investors May Respond To Xiaomi (SEHK:1810) Unveiling Its Flagship 17 Series and European EV Center

• Earlier this week, Xiaomi's CEO Lei Jun unveiled the Xiaomi 17 series, a flagship US$630 smartphone designed to compete directly with Apple's iPhone 17, alongside the opening of Xiaomi's first European electric vehicle R&D and Design Center in Munich.
• This marks Xiaomi's most ambitious effort yet to position itself as a rival to US tech leaders, signaling a bold push into both premium smartphones and the European EV market.
• We'll examine how the Xiaomi 17 launch as an iPhone rival may reshape the company's investment narrative and global expansion prospects.

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Xiaomi Investment Narrative Recap

To own Xiaomi stock right now, an investor needs to believe that the company’s bold push into premium smartphones and European electric vehicles can drive sustainable growth beyond its traditional markets. The launch of the Xiaomi 17 series, positioned directly against Apple’s newest iPhone, may act as a near-term catalyst for Xiaomi, but also intensifies the risk of margin pressure in the fiercely competitive premium smartphone segment.

Among recent announcements, the opening of Xiaomi’s first European electric vehicle R&D and Design Center in Munich stands out as especially relevant. This move extends the company’s consumer tech ambitions, reinforcing the narrative of global expansion, while also highlighting the capital requirements and uncertainties tied to entering Europe’s regulated automotive market.

By contrast, investors should be aware that Xiaomi’s international expansion efforts come with additional risks tied to regulatory changes and brand establishment overseas, especially if...

Read the full narrative on Xiaomi (it's free!)

Xiaomi's outlook anticipates CN¥765.2 billion in revenue and CN¥69.6 billion in earnings by 2028. This projection depends on a 21.3% annual revenue growth rate and a CN¥32.4 billion increase in earnings from the current CN¥37.2 billion.

Uncover how Xiaomi's forecasts yield a HK$66.01 fair value, a 21% upside to its current price.

Exploring Other Perspectives

Thirteen fair value estimates from the Simply Wall St Community for Xiaomi range from HK$31.49 to HK$80.26 per share. While community views cover a wide spectrum, the company’s expansion into Europe adds both potential opportunity and heightened uncertainty around future profitability.

Explore 13 other fair value estimates on Xiaomi - why the stock might be worth as much as 47% more than the current price!

Build Your Own Xiaomi Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Xiaomi research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Xiaomi research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Xiaomi's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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