|Bid||26.400 x 0|
|Ask||26.450 x 0|
|Day's Range||26.000 - 27.600|
|52 Week Range||8.380 - 27.600|
|Beta (5Y Monthly)||1.44|
|PE Ratio (TTM)||N/A|
|Earnings Date||Nov 24, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||17.65|
(Bloomberg) -- Xiaomi Corp. fell as much as 4.2% Wednesday after disclosing internet services revenue grew at its slowest pace in three years, prodding investors to cash in gains from the Chinese smartphone maker’s 2020 rally.China’s No. 2 smartphone maker reported overall revenue rose 34.5% to 72.2 billion yuan ($11 billion) in the September quarter, its fastest pace of growth in two years. It grabbed market share from Huawei Technologies Co. when American sanctions deepened particularly in overseas markets from Europe to India, which yielded more than half of its revenue for the first time. But internet services like music and video grew just 8.7%, down from the previous quarter’s 29% as the Covid-19 boom in Chinese online activity tapered off.Several brokerages cut their price targets on Xiaomi, citing its 140% run-up since the start of 2020 and warning that investors may be underestimating Huawei’s ability to remain a formidable competitor. Xiaomi’s share gains are partly based on the argument it’s one of the biggest beneficiaries of the Trump administration’s campaign to rein in Huawei and contain China’s technological ascendancy. Its unit shipments surged 42% in the third quarter globally, researcher IDC estimated, by far the best performance among brands from Samsung Electronics Co. to Apple Inc. Huawei’s own volumes plummeted 22% over that period, and it now has to defend its No. 2 position against the likes of Vivo.What Bloomberg Intelligence SaysXiaomi’s 51% sequential smartphone sales jump in 3Q may temporarily alleviate concerns of its slowing internet services revenue growth. The Chinese vendor gained the most domestic market share at the expense of Huawei in 3Q, according to IDC.\- Anthea Lai, analystClick here for the research.Xiaomi reported a rise in adjusted net income to 4.1 billion yuan from a year earlier, beating projections for 3.3 billion yuan. Executives warned that component shortages may continue to plague Xiaomi and its peers, as factories worldwide continue to grapple with Covid-era production disruption while demand for parts like memory and processors remains strong.“While we are still confident about the fourth quarter, the supply shortage issues will stay for us and for other vendors as well,” President Wang Xiang told reporters. “We will see a fairly big challenge in fourth quarter and the challenge could persist to next year.”Xiaomi remains one of the few major Chinese tech companies to enjoy strong growth abroad -- and in developed markets, to boot -- at a time governments from the U.S. to India are erecting barriers to the country’s businesses. Overseas revenue from Xiaomi’s smaller Internet of Things division, which sells gadgets like like smart cookers and robot vacuums, rose 56.2% in the third quarter. In India, it’s managed to cling to the top spot despite a deep, nationwide Covid-19 lockdown and bans on several of its apps.At home, it’s benefiting from rapid Chinese adoption of 5G-enabled smartphones as the network rollout gains pace.Read more: Huawei Sells Budget Phone Brand After U.S. Cuts Chip SupplyHuawei this month struck a deal to sell its budget brand Honor to a Chinese government-backed consortium, which may heighten competition in the smartphone arena. But the threat from Huawei itself is likely to diminish until it can somehow get around a ban on American software and circuitry, such as by building its own Android-based operating system of apps.In the short run, Xiaomi could gain as many as 15 million units in additional smartphone shipments thanks to Honor’s exit, Citigroup analyst Andre Lin wrote in a memo ahead of the earnings. “But if Honor remained a major competitor, Xiaomi’s 2021 consensus forecasts would face downside revisions of 5%-10% in shipments,” Lin said.Citing national security concerns, the U.S. has waged a far-ranging campaign against Huawei since 2018 that landed its chief financial officer under house arrest in Canada and fomented bans against the use of the company’s 5G equipment in countries from the U.K. to Japan. The final blow came when the White House enacted sweeping restrictions against suppliers this year, closing off loopholes that let Huawei procure ready-made semiconductors to keep its consumer business afloat.Read more: Huawei’s Latest Phone Marks End of Era As U.S. Spurs RethinkFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- India banned another 43 Chinese apps including some of Alibaba Group Holding Ltd.’s key shopping services, expanding its mobile blacklist to more than 200 applications.The latest action encompassed a number of apps run by the e-commerce giant including Aliexpress, one of its largest malls for overseas shoppers, and Taobao Live, a fast-growing video-based marketplace. India also blocked more than a dozen dating and gaming platforms. They join some of China’s best-known apps from Tencent Holdings Ltd.’s WeChat to ByteDance Ltd.’s TikTok.The government said the bans are in the interest of national security. But the steadily growing blacklist also underscores a broader Indian effort to reduce dependence on its neighbor’s products, and further hampers efforts by China’s largest corporations to expand beyond their own borders. Tensions between the two giant Asian economies have been escalating since 20 Indian soldiers and an unknown number of Chinese troops were killed in clashes along the Himalayan frontier earlier this year.Leaders in India’s technology industry are urging the country to go even further to protect the interests of local companies against foreign rivals, or risk ceding the world’s fastest growing internet arena to Chinese and American giants. Most Chinese tech companies have yet to earn significant revenue from India, but the government’s moves threaten to cut off their access to one of the world’s fastest-growing internet economies.India has also blocked apps run by the country’s No. 1 brand Xiaomi Corp., which relies on its Mi library of services to boost demand for smartphones. The government in June had already halted Alibaba’s UC Browser, which was the second-largest in the country with a 10.2% market share, according to industry portal Statcounter.Read more: India Tech Moguls Urge Tougher Protectionism to Battle ChinaFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Huawei Technologies Co.’s global smartphone market share is expected to fall to just 4% in 2021, a precipitous drop for the company that this summer ranked as the world leader in shipments.China’s telecommunications giant will account for 14% of the market this year and then drop to less than a third of that, TrendForce researchers said Tuesday. A sustained campaign of sanctions against Huawei from the U.S. government has resulted in the company losing access to key software, chip design and manufacturing partners, depriving it of its technological edge.The Honor budget phone division that Huawei recently announced it is selling to a government-backed consortium in Shenzhen will take 2% of the market next year, constrained by its own component shortages and uncertainty around sanctions, according to an article posted on TrendForce’s WeChat account.The forecast points to other established Chinese brands like Xiaomi Corp. and Oppo stepping in to fill the void left by Huawei, benefiting along with Apple Inc.’s iPhone sales. Together with the newly independent Honor, the rest of China’s smartphone makers are likely to expand production targets and compete aggressively for the newly vacated space, TrendForce said.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.