Apples failures in China increased Xiaomis capitalization by 20 billion

Apple’s failures in China increased Xiaomi’s capitalization by $20 billion

From the June low, as reported BloombergShares of Chinese electronics maker Xiaomi rose more than 60%, increasing its capitalization by $20 billion and making the issuer the best participant in the Hang Seng Tech Index. Xiaomi’s success is believed to be partly due to rival Apple’s failures in the Chinese market.

    Image source: Xiaomi

Image source: Xiaomi

Asia’s biggest smartphone market is still slowly recovering after years of decline, but local brands there are doing better than U.S.-based Apple. The recently launched Xiaomi 14 smartphone family has received more than 1 million pre-orders just a few days after its announcement at the end of October. The debut of the Huawei Mate 60 Pro in August was also a success for the company, which has been under the yoke of American sanctions for several years.

In the case of Xiaomi, investor optimism is fueled by rumors that the brand’s first electric car announcement is imminent, as well as enthusiasm for artificial intelligence technologies that the company is also developing. Xiaomi shares could continue to grow in the next six months, according to analysts at JPMorgan Chase & Co. Representatives from Morgan Stanley and Citigroup also expect the Chinese smartphone market to pick up starting next year. Apple smartphones, on the other hand, are losing popularity in China as many users simply do not see any progress in the technical characteristics of this year’s new products.

The new Huawei flagship received unique camera capabilities and the ability to communicate via satellite in emergency situations, while the Xiaomi 14 family received the latest Qualcomm processor, an advanced camera and a new HyperOS operating system with support for the Internet of Things Infrastructure could offer and vehicles. According to Bloomberg analysts, Xiaomi will be able to displace rivals such as Oppo and Vivo next year, and outside of China, the popularity of Xiaomi products is greatest among local vendors. According to Counterpoint Research, Xiaomi was the only one of the top five smartphone makers to manage to increase product shipments both sequentially and year-over-year in the third quarter. In addition to Xiaomi’s shares itself, the shares of its suppliers and contractors are also rising in price.

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