What is driving Xiaomi's market value surge?

Xiaomi's market value has surged $120 billion in the past year due to excitement over its push into electric vehicles (EVs).

How is Xiaomi's smartphone business performing?

Xiaomi's smartphone business is expected to post a major slowdown in growth and narrower profit margins in its upcoming earnings report.

Home / Business and Economy / Xiaomi's $120B Surge Overshadowed by Smartphone Slowdown

Xiaomi's $120B Surge Overshadowed by Smartphone Slowdown

Q: What challenges is Xiaomi facing with its EV business?

Xiaomi is facing capacity issues that have constrained its ability to keep up with strong demand for its EV products.

18 Aug

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Summary

Xiaomi's market value up $120B in past year on EV excitement
Smartphone business expected to post major growth slowdown
EV capacity issues constrain Xiaomi's ability to meet demand

Xiaomi's $120B Surge Overshadowed by Smartphone Slowdown

As of August 18, 2025, investors are anxiously awaiting Xiaomi Corp.'s upcoming earnings report, which comes on the heels of a remarkable rally that has driven the company's market value up by a staggering $120 billion over the past year. This surge in valuation has been fueled by growing excitement over Xiaomi's push into the electric vehicle (EV) market.

However, concerns are now mounting over the performance of Xiaomi's core smartphone operation. The company's quarterly results, due to be released later this Tuesday, are expected to show a significant slowdown in growth and narrower profit margins for this segment. Additionally, Xiaomi may face tough questions from investors regarding the capacity issues that have constrained its ability to keep up with the strong demand for its EV products.

Despite the impressive gains in its market capitalization, Xiaomi appears to be facing a delicate balancing act as it navigates the challenges in both its traditional smartphone business and its newer EV venture.

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