Xiaomi to Buy Back $321 Million in Shares After $72 Billion Rout
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Xiaomi Corp. in Beijing, Dec. 7, 2025. Photo: VCG
Xiaomi Corp. has pledged up to HK$2.5 billion ($321 million) to repurchase its shares, seeking to stem a steep selloff that has erased over HK$560 billion ($71.9 billion) from its market capitalization in just four months.
The buyback, which begins Jan. 23, highlights mounting pressure on the Beijing-based technology firm as it fends off intensifying competition across smartphones and electric vehicles, while grappling with rising component costs and renewed consumer concerns over product safety.
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- Xiaomi pledged up to HK$2.5 billion ($321 million) for share buybacks after losing over HK$560 billion ($71.9 billion) in market value in four months.
- The company faces intensified competition, higher costs, safety concerns in its automotive arm, and weaker margins in smartphones and IoT.
- Analysts have downgraded Xiaomi’s price targets and estimates for 2025–2027, citing chip inflation and electric vehicle market pressures.
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Who’s Who
- Xiaomi Corp.
- Xiaomi Corp. plans a HK$2.5 billion share buyback to counter a significant market selloff. The tech firm faces intense competition in smartphones and EVs, rising component costs, and consumer concerns over product safety after vehicle fires. Despite previous buybacks, the stock continues to struggle, with analysts downgrading forecasts due to memory chip inflation and EV competition.
- Bocom International Securities
- Bocom International Securities has lowered its price target for Xiaomi to HK$50 and reduced its revenue estimates for 2025 and 2026. This adjustment reflects concerns over ongoing memory chip inflation and intense competition in the electric vehicle market, impacting Xiaomi's financial outlook.
- Huatai Securities
- Huatai Securities recently trimmed its revenue and profit estimates for Xiaomi from 2025 through 2027. Consequently, the firm cut its price target for Xiaomi's stock to HK$53.80. This adjustment reflects growing concerns about Xiaomi's financial outlook amid market challenges.
- Nomura Orient International Securities
- Nomura Orient International Securities has maintained a "Neutral" rating for Xiaomi. They've also highlighted a weakening risk-reward profile for the company, indicating caution amidst Xiaomi's recent challenges such as share selloffs, vehicle fire incidents, and competitive pressures in its core businesses.
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What Happened When
- Late September 2025：
- Xiaomi shares peaked near HK$60 and fell after the debut of the Xiaomi 17 smartphone series.
- By Third Quarter 2025：
- Xiaomi's electric vehicle and AI businesses recorded a combined quarterly profit of 700 million yuan for the first time.
- Third Quarter 2025：
- Xiaomi’s smartphone shipments edged up, but revenue fell 3.1% year-on-year to 46 billion yuan; IoT and consumer products segment growth slowed to 5.6%.
- October 2025：
- A deadly fire occurred when a Xiaomi vehicle ignited after a crash, leading to a 5.71% drop in shares.
- October 2025：
- Xiaomi completed the first phase of a new smart appliance facility.
- November 20, 2025 - January 22, 2026：
- Xiaomi repurchased 206 million shares across 34 straight trading sessions, spending over HK$7 billion.
- Early January 2026：
- Xiaomi's CEO Lei Jun pledged to address market concerns about vehicle safety directly.
- January 20, 2026：
- Xiaomi reported two vehicle fire incidents: one in Hainan (repair shop) and another in Kaifeng, Henan (post-collision).
- January 22, 2026：
- Xiaomi shares closed at HK$35.24, with market value at HK$918 billion.
- January 23, 2026：
- Xiaomi's share buyback program begins.
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