Xiaomi released its 2025 financial report yesterday.

Full-year revenue of 457.3 billion, up 25% year-over-year.
Net profit of 39.2 billion, up 44% year-over-year.
Basically crossed the threshold of "earning close to 40 billion annually."
The issue is stuck in Q4, where single-quarter profit was 6.35 billion, compared to 11.3 billion in Q3, a direct drop of nearly 5 billion, down more than 40% quarter-over-quarter.
Main reason: storage prices surged dramatically. Memory prices jumped about 50%, and flash storage nearly doubled. Given that storage costs account for 20%-30% of smartphone costs, it directly eats into profits.
At the same time, Xiaomi smartphone shipments are also declining, down about 10% year-over-year. Market share fell from 14% back to around 11%, mainly because iPhone 17 is performing extremely well.
However, the automotive business is a bright spot. Xiaomi's automotive business started making money in 2025, with a full-year gross margin of 24.3%, up noticeably from 18.5% last year.
It seems Xiaomi's strategy this year is quite aggressive, trading profit for scale. OPPO and VIVO are raising prices, but Xiaomi hasn't.

Xiaomi stock price increase predictions:
First, if storage prices decline, profits will recover.
Second, whether automotive sales can continue to expand.
Third, when AI investment will start converting into actual returns.
Xiaomi's stock price this year should generally be flat. You could consider buying some Xiaomi once memory prices come down.