Xiaomi Launches 17T Series and HK$20B Buyback in Bid to Reverse 30% Rout

Xiaomi unveils new 17T smartphone and HK$20 billion buyback after Q1 earnings miss, amid memory chip cost surge and 47% stock decline.

Xiaomi is firing on two fronts this week as it attempts to halt a punishing selloff that has erased nearly a third of its market value since the start of the year. The Chinese tech giant launched its new 17T smartphone series in Vienna on Thursday afternoon, while simultaneously activating a HK$20 billion share buyback programme — the largest in the company’s recent history. The twin moves come as the stock languishes at a 52-week low of 3.14 euros in Frankfurt, with a cumulative 47% decline over the past twelve months.

The timing is no accident. Xiaomi’s first-quarter earnings, released on Tuesday, landed with a thud. Revenue slumped 11% to 99.1 billion renminbi, its first decline in nearly three years, while adjusted net profit tumbled 43.1% to just 6.1 billion renminbi. On a reported basis, net income fell an even steeper 57% to 4.7 billion renminbi. The primary culprit: exploding costs for DRAM and NAND flash memory chips, whose prices have nearly doubled as AI data centres hoard supply. Operating profit crashed 70% on the year, far worse than market expectations.

Premium push meets margin squeeze

Xiaomi shipped 33.8 million smartphones in the quarter, a 19.2% drop from a year earlier. But the average selling price hit a record of roughly 1,310 renminbi, underlining a deliberate shift away from low-end volume towards higher-margin premium devices. The 17T series, built around a 5x Leica telephoto lens and touted as a “comprehensive upgrade of design and user experience,” represents the next step in that strategy. Whether customers outside the flagship segment will pay up remains an open question; the company declined to offer specific sales targets.

The Vienna launch also showcased the wider AIoT ecosystem — a key pillar of Xiaomi’s diversification. New wearables, including the Watch S5 and Smart Band 10 Pro, a robot vacuum, a mini-LED television, and several home appliances were unveiled in parallel. Xiaomi’s connected-device platform now counts 1.12 billion units, excluding phones and tablets, with 23.6 million users owning five or more devices — a 22.3% jump. The smartphone × AIoT segment generated 79.3 billion renminbi in the quarter, accounting for 80% of total revenue.

Buyback blitz

With the stock under severe pressure, Xiaomi’s board authorised a buyback of up to HK$20 billion in Class B ordinary shares over the next twelve months, starting June 2, 2026 and running until the next annual general meeting in 2027. Management had already made an initial purchase on May 27, picking up 349,400 shares for HK$10 million — a modest down payment on what could be the largest cash return to shareholders in the company’s history.

The message is clear: the board believes the shares are undervalued. But not all analysts are convinced. Jefferies downgraded Xiaomi from “hold” to “underperform” and slashed its price target, while Goldman Sachs also trimmed its forecast. The stock closed at HK$28.40 in Hong Kong on Wednesday, down 4.57%, adding to a year-to-date loss of 30%.

Technicals and the road ahead

Currently trading about 10% below its 50-day moving average and nearly 30% below the 200-day line, Xiaomi’s shares show a relative strength index of 67 — not yet overheating, but in a zone that warns of potential choppiness. Daily volatility remains elevated above 40%. The product cycle could provide a short-term catalyst, especially if the company releases concrete European sales figures and availability details after the launch.

Meanwhile, the profit picture faces ongoing headwinds. Competition from Apple and Huawei in China remains fierce, while Xiaomi’s heavy investments in electric vehicles and artificial intelligence — aimed at future growth — are weighing on near-term earnings. The buyback and the premium handset push are designed to buy time and confidence, but the market is betting that chip costs and a domestic price war will take longer to resolve.