Xiaomi benefits from Apple’s sales drop in China, gains $20 billion in market value
14 November 2023
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With Huawei making a strong return in its home market of China, Apple saw a decline in demand in the region. But it seems like this has presented a great opportunity for local brands, especially Xiaomi, which saw a sizeable rise in market value during this same period.
Apple’s decline in China boosts Xiaomi’s market value
With the Cupertino based giant’s recent dip, local Android smartphone makers are winning both customers and investors in the region. Following a June low, the Xiaomi Corp managed to gain 20 billion US Dollars in market value. The notable rise was accredited to its recent smartphone launches, expansion into electric vehicles, and various other businesses.
The Chinese tech giant’s stock rose by more than 60 percent, making it the best performer on the Hang Seng Tech Index. Xiaomi isn’t the only company taking advantage of Apple’s fall. Chinese Android phone brands are capitalizing on the gap in demand left by the iPhone maker. The Xiaomi 14 series is a major factor in the company’s recent growth. The lineup has received over one million orders since its announcement back in October. This is similar to Huawei’s performance in the last couple of months.
According to Gokul Hariharan, an analyst at JPMorgan Chase & Co, “We believe there is a trading opportunity in the next six months with smartphone and AIoT growth turnarounds and early expectations building for Xiaomi’s electric vehicle foray.” Similarly, Counterpoint Research noted that “Xiaomi is the only top five smartphone brand to see shipment increases both quarter-on-quarter and year-on-year in 3Q 2023 as it strengthened its positions in key markets such as China and India.”
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