Xiaomi’s Dual-Track Offensive: A Higher Phone Target and a New SUV Take Shape

Xiaomi lifts smartphone sales goal 22% to 110 million units on easing memory chip costs, while advancing its electric SUV rollout and continuing share buybacks despite EV losses.

Xiaomi is executing a carefully calibrated two-front strategy, lifting its smartphone sales goal to 110 million units for the current fiscal year while simultaneously preparing the launch of a new electric SUV. The revised phone target, up sharply from the previous 90-million-unit forecast, represents a 22% increase and reflects a meaningful improvement in the company’s cost outlook for memory chips.

The catalyst for the upward revision is a cooling in the DRAM and NAND memory-chip market. After months of rising procurement costs that squeezed margins in Xiaomi’s handset division, the pricing environment is now showing signs of easing. Rivals OPPO and Vivo recently rejected price increases from Samsung Electronics for third-quarter chip deliveries, a move that has dampened pricing pressure across the sector and given Xiaomi more breathing room in its second-half cost calculations.

The stock responded with a modest gain on Friday, closing at €3.00, up 0.17% on the day. Over the past 30 days, the shares have climbed 16.82%, suggesting the market is gradually warming to the improving operational narrative. Still, the stock remains 53.96% below its 52-week high of €6.51 set last September, and year-to-date it is down 30.80%.

Buybacks Continue Despite EV Losses

Alongside the operational upgrade, Xiaomi is pressing ahead with its share repurchase program. On July 22, the company bought back 1.875 million of its own shares at prices between HK$26.60 and HK$26.76, for a total cost of approximately HK$49.995 million. Since the program began on June 3, cumulative buybacks have reached 79.8 million shares, representing about 0.31% of the company’s share capital.

The buyback activity is notable because it comes while Xiaomi’s electric-vehicle division is still bleeding cash. The EV unit posted an operating loss of 3.1 billion yuan in the first quarter. That the management team is willing to deploy capital for share repurchases despite those losses signals internal confidence that the automotive business will scale profitably over time.

A New SUV With a Flexible Interior

Xiaomi is also moving forward with its automotive expansion. The company has released new details about the SkyNomad N90 SUV ahead of a technology presentation scheduled for late July. The vehicle features an unusual 2-2-3 seating layout, a departure from the 2-2-2 configuration common in premium SUVs. CEO Lei Jun has emphasized the layout’s versatility, positioning it to appeal to both large families and business customers.

The SkyNomad N90 is built on Xiaomi’s new “Kunlun” architecture, which makes the cabin modular and convertible into either a mobile workspace or a leisure space. Xiaomi has already pre-produced more than 10,000 units, signaling that deliveries will begin immediately when sales launch in mid-to-late August 2026.

Separately, test vehicles of a new “Extreme” variant of the SU7 Ultra sports sedan were spotted on the Nürburgring Nordschleife, underscoring that Xiaomi is broadening its EV portfolio beyond a single model.

The Memory-Chip Squeeze and the Earnings Date

The automotive push is unfolding against a backdrop of continued cost pressure in Xiaomi’s core smartphone business. The company, along with OPPO and Vivo, is pushing back against price increases from memory-chip suppliers. Stabilizing those costs is seen as critical to hitting the 110-million-unit target without further eroding hardware margins.

All eyes are now on August 18, when Xiaomi will report its second-quarter results and half-year financials. The numbers will show whether the improved chip-cost dynamics are already feeding through to the bottom line and whether the raised sales forecast rests on solid operational footing.

The stock currently trades at €2.98, just above its 50-day moving average of €2.92 but well below the 200-day average of €3.77. The 52-week low of €2.34, marked in June, remains a key support level. With the shares about 27% above that floor, there are early signs of stabilization, but the chart still has a long way to go before it can be called a recovery.

Europe Expansion and AI Investment

Beyond its home market, Xiaomi is planning a debut at the IFA trade show in Berlin in September. The company intends to showcase its “Human x Car x Home” ecosystem, which aims to integrate smartphones, vehicles, and smart-home devices more tightly. The European push is backed by a previously announced commitment to invest €7.4 billion in AI research and development on the continent through 2028.

The coming weeks leading up to the August 18 earnings release will test whether the operational improvements in Xiaomi’s core business are enough to restore investor confidence. The combination of a higher phone target, a growing EV lineup, and continued buybacks paints a picture of a company that is betting big on multiple fronts — but the financial results will need to back up the ambition.