Xiaomi stock price is firing on all cylinders, making it one of the best-performing companies in the Hang Seng index. It has soared by over 300% in the last twelve months and is beating Apple (AAPL) whose shares have jumped by less than 50%. This surge has brought its market cap to over $165 billion.
Why Xiaomi stock price is beating Apple
Xiaomi is one of the best-known technology companies globally, thanks to its quality products like smartphones and other smart home devices.
Its smartphones are some of the most popular brands because of their lower prices and their high quality.
Xiaomi is often compared to Apple, a company that makes the most premium smartphones and other items. While Apple dominates the premium market, Xiaomi has the biggest market share in the lower end.
Xiaomi stock price has done better in the past few months because of its strong performance and innovation, which exceeds what Apple is doing. For example, Apple abandoned its EV project in 2023, while Xiaomi launched its highly popular vehicle last year.
These actions have made it a faster-growing company than Apple. The most recent results showed that Xiaomi’s revenue rose by 30% in the third quarter to 92.5 billion RMB, while the gross margin rose to 20.4%.
Xiaomi’s smartphone and IoT business has continued to thrive as its sales rose by 16.8% to 82.8 billion yuan. Similarly, the smart EV and other initiatives jumped by 52.3% to 9.7 billion yuan, with the gross margin reaching 17.1%. This is notable since its EV business is often a low-margin one at first.
Apple is neither growing nor innovative
Apple, on the other hand, is no longer growing, and is facing substantial challenges in its operations. For example, the most recent financial results showed that its revenue rose to $124 billion in the December quarter, up from $119 billion a year earlier.
Apple’s main challenge is that its smartphone sales that account for most of its revenue have stalled because users are keeping their phones for long. In the past, the upgrade cycle was more frequent since the iPhones looked different.
Apple has not come up with a new successful product in ages. Its most recent product launch was the Vision Pro, which many analysts believe has failed. Before that, the company launched its Apple Watch product, achieving strong performance.
Apple’s services segment, its biggest hope, is also slowing. The recent results revealed that its services sales rose to $6.57 billion from $6.28 billion.
A recent report by IDC shows why Xiaomi is thriving. Its 4Q’24 shipments were 42.7 million, higher than the 40.7 million it shipped a quarter earlier. Its sales were up by 4.8% higher than in the same period a year earlier.
In contrast, Apple’s shipments in Q4 were 76.9 million, lower than the 80.2 million it shipped in Q3. The shipments were about 4.1% lower than those it sold in 2023. As such, while Xiaomi is growing its market share, Apple is largely stagnant.
Xiaomi stock price analysis
The weekly chart shows that the Xiaomi share price has surged in the past few months. This surge happened after the company formed a cup and handle pattern whose upper side is at $35.80. A C&H pattern is one of the most bullish signs in the market.
Its depth was 77%, meaning that the Xiaomi stock target is at $63.25, up by 20% above the current level. The MACD and the Relative Strength Index (RSI) have all pointed upwards, signaling that it has the momentum to keep going.
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