Xiaomi's Smartphone Gross Profit Margin May Fall Slightly This Year -- Market Talk

Dow Jones03-25 10:54

0254 GMT - Xiaomi's smartphone gross profit margin is likely to fall slightly to around 8% this year from 8.3% in 4Q of 2025, HSBC Global Research analysts write in a note. Shipments are likely to decline by 15% due to higher average selling prices. In the EV segment, the new SU7 launch is tracking well, with over 30,000 lock-in orders in three days, pointing to a favorable average selling price mix, they say. HSBC views the company's EV guidance of 550,000 deliveries this year as achievable given the strong launch momentum. However, there are some pressures on gross profit margin due to cost inflation and demand-side incentives changes, they add. HSBC has a buy rating but cuts the stock's target to HK$53.40 from HK$58.50. Xiaomi's shares are last at HK$32.34.(jiahui.huang@wsj.com; @ivy_jiahuihuang)

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March 24, 2026 22:54 ET (02:54 GMT)

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