# smartphone margins

From Overnight Riches to a Margin Squeeze: Why Xiami’s (Xiaomi) Rally Has Turned Into Investor Anxiety

Xiaomi’s early 2026 euphoria has faded as the company faces a squeeze from sharply higher memory-chip prices, intensified domestic competition from Huawei, and softer demand for its EVs and handsets. Multiple brokerages have cut targets and earnings forecasts, and the stock has fallen nearly 47% from recent highs, raising broader questions about margins and strategy.