Xiaomi’s Spring Offensive: A Cheaper Phone, a 1,000-HP SUV, and Earnings That Could Sink the Stock

Xiaomi pulls forward 17T Pro launch to May and readies YU7 GT EV as Q1 earnings miss consensus, with hardware profits shrinking and stock down 53% from highs.

Xiaomi is flooding the market with new hardware just as its financial picture darkens. The Chinese tech group is pulling forward the launch of its 17T Pro smartphone to May — four months earlier than its typical autumn release — while simultaneously preparing to roll out its most powerful electric vehicle yet. The timing is awkward: analysts at Citigroup expect first-quarter earnings to miss consensus by a wide margin, and the stock has already been cut in half over the past year.

The accelerated smartphone cycle targets the upper mid-range segment with a notably higher price tag. Leaked details point to a starting price of €649 for the base model and €799 for the Pro version, which would mark a significant step up from previous generations. Both devices are expected to run on new MediaTek processors and pack batteries of up to 7,000 mAh, with the Pro model featuring a 6.83-inch AMOLED display. Xiaomi has yet to confirm the specifications or pricing officially.

The hardware blitz masks a deeper structural shift. The contribution of the hardware division to total gross profit has shrunk to just over 15 percent, down from more than 40 percent at the beginning of 2024. The gap is being filled by newer segments — electric vehicles, artificial intelligence, and other initiatives now account for roughly 35 percent of gross profit. The company has already deployed humanoid robots on its production lines and is developing proprietary AI models in direct competition with global players.

Yet investors have not rewarded the transformation. The stock trades at €3.34, well below its 200-day moving average, and hit a new year-to-date low of €3.17 in late April. That is roughly 53 percent below the 52-week high of €6.69 and leaves the shares just five percent above their trough.

The immediate catalyst is the first-quarter earnings release, scheduled for May 26. Citigroup reiterated its "Buy" rating on May 4 but slashed its expectations, forecasting adjusted net profit roughly 16 percent below the market consensus. The bank sees total revenue falling 12 percent to 98.4 billion yuan and adjusted net profit plunging 45 percent to 5.9 billion yuan. Smartphone sales are the main drag — revenue down 14 percent year-on-year and shipment volumes off 19 percent — while government EV purchase-tax subsidies are squeezing margins in the electric vehicle business.

On the EV front, Xiaomi is preparing the YU7 GT, a high-performance SUV with approximately 1,000 horsepower, a top speed of 300 km/h, and a range of up to 705 kilometers. The vehicle, developed at the Munich R&D center that opened in March 2025, is already piling up at the factory ahead of an official debut this month. EV deliveries recovered to more than 30,000 units in April after a weak March, bringing the year-to-date total to roughly 109,000. That is just under 20 percent of the full-year target of 550,000 vehicles — a goal that requires average monthly deliveries of around 55,000 from May through December. The company’s monthly record stands at 50,000, set in December 2025.

The board meets on May 26 to approve the first-quarter results, with publication expected by the end of the month. A strong set of numbers could finally stem the stock’s months-long slide. Anything less, and the gap between Xiaomi’s ambitious product pipeline and its market valuation will only widen.