Xiaomi's Stock Skids to 52-Week Low Despite Premium Phone Push and Share Buybacks

Xiaomi shares hit a 52-week low at €2.86, down 35% YTD, despite aggressive buybacks and premium launches in India and China. Margin compression and competition cloud the outlook.

Xiaomi’s shares touched a new 52-week low of €2.86 this week, deepening a decline that has wiped out more than half their value from a June 2025 peak of €6.69. The drop comes even as management ramps up stock repurchases and rolls out a fresh wave of higher-end smartphones in both China and India.

At €2.89, the stock now trades just 1.2% above its yearly trough. The sell-off has slashed 35.6% from the share price since the start of the year, a stark contrast to the company’s product offensive and its growing focus on the premium segment.

India’s market is shifting up — and Xiaomi is chasing the move

The Xiaomi 17T launched in India this week at an effective price of roughly $650 after an instant discount of 5,000 rupees. The device targets the mid-premium bracket, a category that expanded 29% year-on-year in the first quarter of 2026. The higher premium tier grew even faster, rising 32%.

Those numbers reflect a structural shift in the world’s second-largest smartphone market. Overall shipments in India fell 4.1% to 31 million units in Q1, according to IDC, but the average selling price hit a record $302 — up 10.4% from a year earlier. The entry-level segment is shrinking, and consumers are trading up.

Xiaomi’s move into higher price points is no longer optional. Smartphone gross margins narrowed to 10.1% in the first quarter, squeezed by rising memory and component costs as well as intensifying competition. Total revenue came in at 99.1 billion renminbi, with the smartphone division contributing 44.3 billion. The group shipped 33.8 million handsets worldwide, securing third place with an 11.3% market share — the 23rd consecutive quarter among the top three.

A flurry of product launches in China and India

On the product front, Xiaomi unveiled the 17T and 17T Pro in China on June 8, marking a shift in strategy: the T-series had previously been reserved for international markets. The Indian 17T launch followed shortly after. Both devices feature a Leica triple-camera system with a 5x periscope telephoto lens, a first for the T-series.

Beyond phones, Xiaomi India is launching the TV FX Mini LED series, available from June 11, and the Redmi Turbo 5 is expected around June 16. The company is also developing a new MIX flagship, powered by its in-house Xuanjie-O3 processor and running the HyperOS 4 platform.

Buybacks fail to sway the market

The company has been buying stock aggressively. On June 5, it purchased 3.5 million shares; three days later it added another 3.6 million shares, spending roughly 98.4 million Hong Kong dollars on each tranche. Yet the market has largely ignored the signal.

The relative strength index stands at 31.3, deep in oversold territory. The stock is trading about 31% below its 200-day moving average of €4.26, and 30-day annualized volatility has clocked in at 42.5%. Technical indicators suggest selling pressure may be exhausted in the near term, but the fundamental picture remains clouded by margin compression and a tough competitive landscape in China.

With the quarter drawing to a close, analysts will be watching the next set of results for signs that Xiaomi’s premium push can translate into better margins and stabilize a stock that keeps plumbing new lows.