XIAOMI(HK:01810) Feng Huang Wang·2025-11-18 11:58Core Viewpoint - Xiaomi's recent performance shows significant growth in smartphone sales and IoT revenue, while also highlighting challenges in the automotive sector due to market competition and policy changes [1] Smartphone Sales - Xiaomi's 17 series achieved over 1 million units sold within 5 days of launch, with cumulative sales exceeding 2 million by early November, indicating a faster sales pace compared to the previous generation [1] - During the Double Eleven shopping festival, the Xiaomi 17 Pro Max became the best-selling smartphone in both sales volume and revenue in the price segment above 6000 yuan, being the only domestic model competing with the iPhone [1] IoT Business - In Q3, Xiaomi's IoT revenue reached 27.6 billion yuan, marking a year-on-year growth of 5.6%, with a gross margin increase to 23.9%, maintaining growth for seven consecutive quarters [1] - The gross margin and average selling price of the home appliance segment have both improved, with the company focusing on innovation rather than price wars to drive demand [1] - Xiaomi's home appliance business has significant overseas potential, having entered Southeast Asia and Europe this year, with plans for further expansion next year [1] AI Initiatives - Over the past year, Xiaomi has released various AI models, including language, multimodal, and voice models, and has open-sourced the smart home exploration project Xiaomi Miloco in November [1] - The total R&D investment for the year has reached 23.5 billion yuan, with one-quarter allocated to AI, exceeding initial expectations [1] Automotive Business - Xiaomi's automotive business is expected to maintain stability in Q4, with a projected annual delivery target of 350,000 vehicles [1] - However, challenges are anticipated in 2026 due to changes in vehicle purchase tax policies and increased market competition, with expectations of a decline in automotive gross margins next year compared to this year [1]