Core Viewpoint - Xiaomi Group has rapidly declined from being a market favorite to one of the worst-performing tech stocks in China, facing challenges in the smartphone and electric vehicle markets, with upcoming earnings expected to show the slowest revenue growth of 2023, raising market concerns [1] Group 1: Financial Performance and Market Sentiment - Xiaomi is set to announce its earnings on November 18, which are anticipated to reflect the slowest revenue growth since the beginning of 2023, potentially intensifying market skepticism [1] - The stock price has dropped nearly 30% from its recent high in September, underperforming in the Hang Seng Tech Index [1] - The average target price for Xiaomi's stock has been reduced by over 8% since August, ranking third in decline among Hang Seng Tech Index constituents [3] Group 2: Challenges in Key Markets - Rising memory chip prices are expected to squeeze Xiaomi's smartphone profit margins, while weak consumer demand in China and strong sales of Apple's iPhone 17 complicate Xiaomi's pricing strategy [1] - The electric vehicle sector is facing challenges as local government subsidies for trade-in programs are being phased out, impacting the overall automotive market [2] - Concerns about electric vehicle delivery volumes and associated revenues are growing due to insufficient production capacity [1][2] Group 3: Investment Outlook - Despite the stock's decline, it is now more accessible for investors, with a projected price-to-earnings ratio of 19, which is half of its peak earlier this year [2] - Domestic investors have been actively buying the stock, with net purchases through the Hong Kong Stock Connect for 13 consecutive trading days as of November 14 [3]

Core Insights - The Redmi K90 series was officially launched, but the 12G+512G version saw a price drop of 300 yuan from 3199 yuan to 2899 yuan just one day after its release, which is an unusual move in the smartphone market [1][3] - The price reduction was attributed to consumer dissatisfaction regarding the price differences between versions, particularly for the 12G+512G model, which has the highest demand [1][3] - The increase in memory prices due to foreign manufacturers' control has impacted the pricing strategy, leading to the decision to lower the price to improve brand perception [3][4] Pricing Strategy - The initial pricing of the K90 series, particularly the 12G+256G model starting at 2599 yuan, was considered inappropriate, as the 12G+512G version's price increase of 600 yuan for an additional 256G of storage was seen as excessive [3] - The price adjustment to 2899 yuan for the 12G+512G version is viewed as a more reasonable price point rather than a significant discount [3] Market Context - The smartphone market is currently experiencing price fluctuations due to various factors, including the upcoming Double 11, Double 12, and New Year sales, which are typical periods for price reductions [7] - Industry insiders have indicated that memory prices are expected to rise further next year, which may lead to higher prices for new models [4] - Consumers who purchased the 12G+512G version before the price drop are eligible for a price protection policy, allowing them to receive a refund for the price difference [4]