Latest news with #LeiJun
Reuters
4 days ago
- Automotive
- Reuters
Xiaomi stores fuel to stoke China's car battles
HONG KONG, May 28 (Reuters Breakingviews) - Xiaomi ( opens new tab is primed to launch the next salvo in China's car wars. The smartphone-to-autos maker reported, opens new tab record first-quarter revenue on Tuesday, while adjusted net income rose by two-thirds to $1.5 billion. A 10% profit margin and deep pockets mean it can afford to be more ambitious. That bodes ill for Tesla (TSLA.O), opens new tab, Xpeng ( opens new tab and other rivals. At first glance, founder Lei Jun's fast-paced strategy looks hard to sustain. His fledgling electric-car business is growing rapidly, but has yet to turn a net profit. At the same time, he is investing heavily in new technology and plans to splurge $7 billion on chips over the next decade. The road ahead is treacherous. Xiaomi is rebuilding its reputation after three people died in a crash involving an SU7 car that had engaged its autopilot mode. Its vehicle sales fell in April as competitors took the opportunity to tout their own safety credentials. Rivals are also accelerating a brutal price war: over the weekend, BYD ( opens new tab, ( opens new tab announced a fresh round of incentives, effectively reducing the price of its cheapest model to less than $8,000 - a roughly 20% cut, opens new tab per Bloomberg. Yet Xiaomi is not necessarily struggling – if anything, it is charging into the fray. Its debut sport utility vehicle, launched last week, is packed with features that set it apart from similar models, such as having lidar as standard. Analysts anticipate a price point around 250,000 yuan, or some $35,000, comparable to Tesla's Model Y despite additional specs and costs. Lei has more leeway to take expensive risks because, unlike most EV startups and legacy automakers, he has a robust core business. Smartphones and appliances made up more than 80% of sales last quarter, and premium products lifted profits: the gross margin for their electronics and lifestyle business rose 5.4 percentage points compared to a year earlier. So investors can more readily tolerate a money-losing auto unit. That is boosting Xiaomi's financial firepower, too. Annual free cash flow has topped $4 billion for two years straight. After raising a further $5.5 billion in a Hong Kong share sale earlier this year, it ended March with more than 100 billion yuan in net cash, or some $15 billion, according to Visible Alpha. With the share price near an all-time high, Xiaomi could consider raising funds again soon, reckons Morningstar analyst Dan Baker. Xiaomi may be stoking China's car wars, but it can stand the heat. Follow Katrina Hamlin on Bluesky, opens new tab and LinkedIn, opens new tab.
Yahoo
4 days ago
- Automotive
- Yahoo
Xiaomi Just Took Aim at Apple and Tesla -- And It's Not Backing Down
Xiaomi (XIACY) just fired a shot at two of the world's most valuable companies and it wasn't subtle. At a splashy product launch in China, CEO Lei Jun unveiled the 15S Pro smartphone, priced at just 5,499 yuan ($764), making it eligible for a government subsidy. That's well below the iPhone 16 Pro's 7,999 yuan starting point a critical price edge in a country where the 6,000 yuan threshold unlocks discounts for consumers. More importantly, Lei claimed Xiaomi's homegrown chip, the Xring O1, beats Apple's (NASDAQ:AAPL) A18 Pro in key areas like thermal performance during gaming. It took four years and $1.87 billion to develop and it's already in mass production using the same 3nm process that powers Apple's flagship. Warning! GuruFocus has detected 6 Warning Signs with XIACY. But phones are just the warm-up act. Xiaomi's real ambition might be on four wheels. After undercutting Tesla (NASDAQ:TSLA) last year with its SU7 sedan priced $4,000 lower than the Model 3 the company is now preparing to launch the YU7 SUV in July. Lei didn't reveal pricing, but he did drop a few details: the YU7 will feature chips from Qualcomm and Nvidia, advanced driver assist, and up to 835 km of range. Still, the road hasn't been smooth. A fatal SU7 crash triggered tighter ad rules on driver-assist features. Despite that, Xiaomi delivered 28,000 vehicles in April and shows no signs of slowing down. Investors will get their next read on May 27, when Xiaomi reports Q1 results. Last year, it posted record revenue and profit, with nearly 42% of sales coming from overseas markets. The stock is already up over 50% year-to-date and with Lei pledging 200 billion yuan in R&D through 2031, the market may be starting to realize: this isn't just a phone company anymore. Xiaomi wants to play in every arena Apple and Tesla dominate and it's bringing its own chips, cars, and pricing power to the fight. This article first appeared on GuruFocus.
Yahoo
4 days ago
- Automotive
- Yahoo
Xiaomi Just Took Aim at Apple and Tesla -- And It's Not Backing Down
Xiaomi (XIACY) just fired a shot at two of the world's most valuable companies and it wasn't subtle. At a splashy product launch in China, CEO Lei Jun unveiled the 15S Pro smartphone, priced at just 5,499 yuan ($764), making it eligible for a government subsidy. That's well below the iPhone 16 Pro's 7,999 yuan starting point a critical price edge in a country where the 6,000 yuan threshold unlocks discounts for consumers. More importantly, Lei claimed Xiaomi's homegrown chip, the Xring O1, beats Apple's (NASDAQ:AAPL) A18 Pro in key areas like thermal performance during gaming. It took four years and $1.87 billion to develop and it's already in mass production using the same 3nm process that powers Apple's flagship. Warning! GuruFocus has detected 6 Warning Signs with XIACY. But phones are just the warm-up act. Xiaomi's real ambition might be on four wheels. After undercutting Tesla (NASDAQ:TSLA) last year with its SU7 sedan priced $4,000 lower than the Model 3 the company is now preparing to launch the YU7 SUV in July. Lei didn't reveal pricing, but he did drop a few details: the YU7 will feature chips from Qualcomm and Nvidia, advanced driver assist, and up to 835 km of range. Still, the road hasn't been smooth. A fatal SU7 crash triggered tighter ad rules on driver-assist features. Despite that, Xiaomi delivered 28,000 vehicles in April and shows no signs of slowing down. Investors will get their next read on May 27, when Xiaomi reports Q1 results. Last year, it posted record revenue and profit, with nearly 42% of sales coming from overseas markets. The stock is already up over 50% year-to-date and with Lei pledging 200 billion yuan in R&D through 2031, the market may be starting to realize: this isn't just a phone company anymore. Xiaomi wants to play in every arena Apple and Tesla dominate and it's bringing its own chips, cars, and pricing power to the fight. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
4 days ago
- Automotive
- Yahoo
Xiaomi Sales Beat Estimates on EV, Smartphone Growth
(Bloomberg) -- Xiaomi Corp. reported better-than-expected revenue in the March quarter as it moves to aggressively expand its presence in China's EV market and grow its core smartphone business. NY Private School Pleads for Donors to Stay Open After Declaring Bankruptcy UAE's AI University Aims to Become Stanford of the Gulf NYC's War on Trash Gets a Glam Squad Pacific Coast Highway to Reopen Near Malibu After January Fires Revenue rose to 111.3 billion yuan ($15.5 billion), Xiaomi said in a statement Tuesday, beating the average analyst estimate of 109 billion yuan. The company recorded 75,869 deliveries of its SU7 sedan during the period. Its Internet of Things division, which sells products ranging from home appliances to wearable tech, was a strong performer with revenue growth of nearly 60% from a year earlier. Beijing-based Xiaomi is moving ahead with billionaire co-founder Lei Jun's $10 billion strategy to join the ranks of the world's top automakers. After taking on the likes of Tesla Inc. and BYD Co. in the crowded market last summer, the company posted a loss of 700 million yuan from its EV division in the fourth quarter. That loss narrowed to 500 million yuan last quarter, the company said, as it pins its hopes on its first electric sport utility vehicle — the YU7 — which it unveiled last week and will hit the market as early as July. Read: Xiaomi Billionaire Touts SUV, Chinese Chip in Tech Showcase China's EV leader BYD is keeping the pressure on Xiaomi, starting a price war earlier this year by adding advanced driver-assistance features across most of its lineup at no extra cost. Last week, BYD slashed prices on a range of electric and plug-in hybrid models by as much as 34%. Xiaomi has come under further pressure following a fatal crash in late March that involved its SU7 model. The cause of the accident, which killed three, hasn't yet been announced. The SU7 had its autopilot function turned on at the time of the crash and EV makers' self-driving advertising claims have come under growing scrutiny. Just days before the accident, Xiaomi had raised its 2025 delivery target for electric vehicles to 350,000 units. But the company's EV sales took a hit in April, according to Deutsche Bank AG. Xiaomi's President Lu Weibing said on a call with media Tuesday that the company was still looking to meet its delivery target for the year. Strong first quarter EV deliveries have put Xiaomi 'a step closer' to reaching that target, Bloomberg Intelligence analysts Steven Tseng and Sean Chen said. Revenue from Xiaomi's core smartphone business grew 8.9% during the period, it said. Shipments have grown 40% year-on-year at home, driven by Chinese government subsidies, according to a recent research note from consultancy Counterpoint. Its share price has also recovered from its March low, surging nearly 90% in the past six months. Xiaomi is moving to shore up support for its mainstay gadget business by designing its own chips, with a plan to spend $7 billion this decade to bulk up its semiconductor muscle. Together with the new SUV, Lei also publicized the self-designed Xring chip and new mobile devices powered by the processor at the same event last week. 'The new processor could diversify its high-end lineups, expand its potential customer base and strengthen bargaining power with chip suppliers, especially Qualcomm,' analysts Tseng and Chen said in a note last week. --With assistance from Linda Lew, Debby Wu and Vlad Savov. (Updates with additional details, analyst reaction from the second paragraph.) Mark Zuckerberg Loves MAGA Now. Will MAGA Ever Love Him Back? Why Apple Still Hasn't Cracked AI Inside the First Stargate AI Data Center How Coach Handbags Became a Gen Z Status Symbol AI Is Helping Executives Tackle the Dreaded Post-Vacation Inbox ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Recorder
4 days ago
- Automotive
- Business Recorder
Xiaomi reports 47% revenue growth in Q1 as it launches new electric SUV
BEIJING: China's Xiaomi reported a 47.4% annual jump in first-quarter revenue on Tuesday as the company doubled down on making electric vehicles. Revenue for the quarter ended March 31 was 111.3 billion yuan ($15.48 billion), beating the 107.6 billion yuan average of 17 analyst estimates compiled by LSEG. Adjusted net profit jumped 64.5% year-on-year to 10.7 billion yuan, ahead of the average estimate of 8.96 billion yuan, according to LSEG data. The world's third-largest smartphone maker, whose product lines extend to home appliances and cars, announced its latest electric SUV, the YU7, last week, which Xiaomi will start selling in July. Xiaomi did not disclose the price of the YU7 but suggested its better configurations should make the car 60,000-70,000 yuan more expensive than Tesla's best-selling Model Y, which is expected to be its strongest competitor and is priced from 263,500 yuan ($36,574). Xiaomi entered the auto sector last year with its sporty EV SU7, which drew styling cues from Porsche and was priced below Tesla's Model 3. Since December, the SU7 has outsold Tesla's Model 3 in China on a monthly basis. China's Xiaomi to invest almost $28 billion in core technology R&D over next five years Xiaomi's SU7 deliveries have exceeded 258,000 units since its launch, company founder Lei Jun said last week. Xiaomi's EV business generated 18.1 billion yuan in revenue during the first quarter, delivering 75,869 SU7 sedans. The adjusted net loss related to its EV and other new initiatives reached 0.5 billion yuan. The company's new EV orders have fallen following a fatal highway crash at the end of March involving an SU7 in driving-assistance mode,analysts have said. Its problems have been compounded by customer complaints of false advertising. Xiaomi apologised earlier this month for 'not clear enough' marketing. Still, Xiaomi's shares have rebounded since April, giving it a market value of about $170 billion, higher than the roughly $161 billion commanded by BYD, China's biggest EV maker, LSEG data show.
