Buy or not to buy Xiaomi shares? Our future forecast 2022!

John James
October 11, 2021
Getting started now is more worthwhile than ever! Accordingly, we took a closer look at the How to buy Xiaomi shares? Xiaomi share forecast, the Xiaomi share dividend and the general price target of the share.
Buy or not to buy Xiaomi shares Our future forecast 2021!

Xiaomi Corporation is a China-based investment holding company primarily engaged in the research, development and sales of smartphones, Internet of Things (IoTs) and lifestyle products, as well as the provision of internet services and the investment business.

In addition to smartphones , the company also produces smart TVs (TVs), laptops, speakers with artificial intelligence (AI) and smart routers.

In the world’s largest growth market, China, Xiaomi is already at the forefront with companies like Huawei and continues to generate profits. Another of Xiaomi’s largest markets is also fast growing India, where it has the highest market share in cell phones.

In the future, the company plans to expand its product range for the global market. Should Xiaomi continue to grow in India and China, this means for shareholders that the Xiaomi share could well become a heavyweight!

Getting started now is more worthwhile than ever! Accordingly, we took a closer look at the How to buy Xiaomi shares? Xiaomi share forecast, the Xiaomi share dividend and the general price target of the share.

Table of Contents

What should you look out for when buying Xiaomi shares?

You should pay attention to the following points when buying Xiaomi shares:

  • Why should you invest in Xiaomi stocks? Xiaomi is often neglected in South Africa because mobile phone manufacturers such as Samsung and Apple are ahead here. However, Xiaomi has the largest market share in booming India. But Xiaomi is also gaining ground in Europe. Smartphone shipments to Europe increased by 64.9%, which allowed Xiaomi to crack the top 3 in the European market share. Xiaomi is now No. 1 in Spain, Ukraine and Poland, No. 2 in France and who would have thought it, No. 4 in South Africa and Italy. Xiaomi is also penetrating other emerging markets. Shipments rose 99.4% in Latin America, 66.3% in the Middle East and 113% in Africa.
  • Where can you buy Xiaomi shares? Xiaomi shares can be bought from any online broker. However, we recommend our test winner broker ETFinance. In our opinion, ETFinance is the absolute best stock broker, as you can buy stocks and ETFs here completely free of charge.
  • What can the future of Xiaomi stocks look like? If Xiaomi can maintain its high market share in emerging markets and continue to gain a foothold in Europe, Xiaomi could be a sleeping giant. Of course, it remains questionable whether Xiaomi can prevail against the increasingly cheaper cell phones from Apple.

The best brokers for buying Xiaomi stocks:

Rating

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Buy or not to buy Xiaomi shares Our future forecast 2021!

Buy Xiaomi shares in 4 steps

Step 1: Select a broker for Xiaomi stocks

How to invest in Xiaomi stocks The Xiaomi share investment is basically quite simple. It is best to use one of the numerous online brokers. It is generally very easy there to buy all kinds of stocks.

It is advisable to pay particular attention to deposit insurance. For example, if the broker files for bankruptcy, your own deposits and shares are retained thanks to deposit protection. Our test winner, ETFinance, for instance, offers state-guaranteed deposit protection of up to 20,000 euros and 0% commission when buying shares.

The registration is done within a few minutes, and in most cases, you can start trading within a short period of time.

Before doing this, it is, of course, worthwhile to calmly evaluate the company because when investing, you should always analyze exactly where you are investing very hard-earned money. After the decision, you can place a buy order with most exchanges within a few clicks.

Stock selection and valuation can be very complicated. If you want it to be easier, we recommend a social trading platform. Here you just follow an experienced trader and automatically copy that trader’s trading decisions.

Our broker recommendation at this point is ETFinance. At ETFinance, valid EU regulation meets fair prices and a sophisticated platform. To register with ETFinance, click here.

Step 2: Registration

If you have decided on a broker, you still have to log in with your data and verify your email address.

You can then first try out the demo account extensively and free of charge. This has a number of advantages. Then when you are ready to trade, you still need to complete a  personal verification and deposit. To verify yourself, you need a valid ID and proof of residence (e.g. electricity bill) at ETFinance.

Step 3: deposit

After registering, you need to decide how much money to invest in stocks. We generally recommend that you never invest more than 5% of your capital in a single share. So possible losses are manageable.

How much you want to invest in Xiaomi shares, however, is entirely up to you. First of all, of course, you first have to add funds to your new ETFinance share account. To do this, simply click on ” Add money ” in this step.

ETFinance offers various payment options with which you can deposit money into your customer account. The most popular payment options are  PayPal, credit card or bank transfer. It should be noted that a bank transfer usually takes 2-3 working days for the credit to reach the customer account. However, if you want to have your money in your account faster, there are other payment methods available.

Below is an overview of all the payment methods available at ETFinance:

Payment optionpossible?
Buy Xiaomi shares with credit card✔️
Buy Xiaomi shares with PayPal✔️
Buy Xiaomi shares with Skrill✔️
Buy Xiaomi shares with bank transfer✔️
Buy Xiaomi shares with Neteller✔️
Buy Xiaomi shares with UnionPay✔️

Step 4: Buy Xiaomi shares

After the deposit, the money appears in your account under the menu item “Account”. Now you just have to search for the Xiaomi share using the search bar and select it. Then click on the “Trade” button.

A small window will open where you can set the price and the number of shares you want to buy. You can also set stop-loss and take-profit, i.e. at which price the share should be sold again in the event of a profit or loss. The two fields are optional.

The Leverage field allows you to control whether you want to buy the real share (x1 leverage) or a CFD (x2 or more leverage).

With a final click on “Place order “, the purchase is completed, and the share appears in your portfolio. Congratulations!

What is Xiaomi

Xiaomi was founded in Beijing, China, in 2010. The company has been particularly well known since 2014. In 2014, the company managed to take the electronics and mobile world by storm. The flagship Mi4 was one of the best-selling phones in history, paving the way for mid-size cell phones and their market base.

The company was founded by eight partners. The main investor was a Singapore- based investment group called Temasek Holdings and a Chinese venture capitalist called IDG Capital along with Qiming Venture Partners.

Xiaomi was one of the first to be endorsed by Qualcomm’s major cellphone companies. Xiaomi still uses its processors for its devices today. One of the first devices that Xiaomi developed was the Mi2.

This was the first device with the revolutionary and famous Qualcomm Snapdragon chip. The device sold nearly 10 million times in the first eleven months of its launch, allowing Xiaomi to gain a foothold in markets such as Australia, the US, Europe and New Zealand.

After the success of the Mi2, Xiaomi started its international activities. The Xiaomi Mi3 managed to build on the success of the Mi2. The company then ventured into markets in countries such as India, Malaysia, and the Philippines with the device. In India, they have reached an agreement with popular online shopping giant Flipkart to sell their phones.

The reasons for the great success of Xiaomi lie in its unique marketing and strategy approach, which is very different from the giant’s Apple and Samsung. The company is able to sell its products at almost the cost of manufacture and makes its profit with a very small profit margin per item. Another unique selling point of Xiaomi is that the company has no physical stores and prefers to sell its products through an exclusive online store. This was also one of the reasons that Xiaomi hardly had to accept any market losses in 2020 during the coronavirus crisis.

Information about the Xiaomi share: course, price and key figures

Before jumping into an investment, try to find out as much as you can about the security. First of all, it is important to take a closer look at the key figures.

Xiaomi’s (OTC: XIACF) shares have skyrocketed in the last few weeks following the company’s earnings report for the final quarter. It is currently at $ 3.27. The company has a market capitalization of 100.44 billion US dollars. For the past 52 weeks, Xiaomi stock has traded between $ 1.07 and $ 3.45.

The Xiaomi share is currently in a strong upward trend, which has been in place since March 2020. The share has more than doubled since the beginning of this year. 

Buy or not to buy Xiaomi shares Our future forecast 2021!

Xiaomi Share News & History

After looking at the Xiaomi share key figures, we now go into detail on the history of Xiaomi.

When you compare Xiaomi to other major smartphone brands – including Samsung, Apple, LG, Huawei, etc. – you quickly notice one thing: how young the company is. Xiaomi was founded in 2010, making it the youngest company on the list of the top ten smartphone manufacturers in the world.

Xiaomi – pronounced “shee-yow-mee” – began when CEO and founder Lei Jun put together a team of tech veterans to work for a new company. Based on employee references (including former Google and Motorola employees) and the company’s mission statement, Jun was able to raise millions in seed capital.

In China, Xiaomi is one of the leading mobile phone manufacturers. The company is already the market leader in India and many emerging markets. In addition to cell phones, the company also produces smart TVs and speakers.

Story of Xiaomi

In 2010, Xiaomi was founded by eight partners in Beijing, China.

Just a year later, Xiaomi released its first Android smartphone called the Mi1. The cell phone is going to be a hit in China.

Xiaomi announced the successor to its Mi1 – the Mi2 – back in 2012. The cell phone is the first cell phone in the world to feature the famous Qualcomm Snapdragon processor.

In 2014 Xiaomi started investing outside of the mobile phone business. Xiaomi is investing a total of 1 billion US dollars in various technology industries.

A year later, Xiaomi started expanding its business in India. The Xi 4 is a hit in India and Brazil. Xiaomi has become a global group and is the market leader for mobile phones in many emerging countries.

In recent years, Xiaomi has taken care of expanding its mobile phone business and, in addition to the Mi, also released the Redmi, a so-called phablet. As a result, Xiaomi is increasingly able to gain a foothold in Europe with its cheap cell phones.

Successful Xiaomi product lines

Not only is Xiaomi known for its phones, but they also have a wide range of other products. This includes laptops under the brand name Mi Notebook. The Mi Notebook line is based heavily on the design aesthetics of the Apple MacBooks. However, the devices have Windows as their operating system. The latest laptop from Xiaomi is the Mi Notebook 14 Horizon Edition. This is the first laptop that the company has released for the Indian market. As with its smartphones, Xiaomi only launches its laptops in certain countries.

Xiaomi phones

Unfortunately, Xiaomi’s line of smartphones is very confusing. Each line usually has a numbered device, and that numbered device usually has multiple offshoots that either decrease or increase the price. The company is also changing the specifications and design of various devices based on where they are launched and is even renaming devices in certain countries.

If you ignore all of that, however, Xiaomi only has two current major ranks of smartphones.

Xiaomi Mi

The Mi-smartphones by Xiaomi are the lifeblood of the company. Every year there is a new numbered entry in the series, most recently the Xiaomi Mi 10 from 2020. Within the Mi 10 series, there are Pro, Ultra and Lite variants. Soon there will also be T variants known as Xiaomi Mi 10T and Mi 10T Pro.

The latest premium smartphone from Xiaomi combines an excellent fit and workmanship with a high-quality camera. The software experience could be better; however, in general, every Mi phone has a high-end Qualcomm processor and a top-notch camera system. On the Mi 10, most phones come with the Qualcomm Snapdragon 865, the 2020 flagship processor. However, some of the offshoot devices only come with the Snapdragon 765G. In both cases, all Mi 10 phones are 5G capable.

The Xiaomi Mi series is comparable to the Samsung Galaxy S line and the numbered main series from OnePlus.

Xiaomi Redmi Note

The Mi Note line is an inferior series compared to the flagship Mi line. There are comparatively fewer Mi Note phones than Mi phones. The latest Notes are the Xiaomi Mi Note 10 and the Mi Note 10 Pro, both of which were launched in late 2019. These phones are equipped with the Qualcomm Snapdragon 730G processor.

In general, the Mi Note range has lower specifications and features than a Mi device with a similar number.

Buy or not to buy Xiaomi shares Our future forecast 2021!

Xiaomi Wearables – Xiaomi Mi Band

In addition to laptops, Xiaomi also manufactures wearables and audio devices. In fact, Xiaomi has made some of the most successful fitness trackers out there. The Mi Band wearables offer high-end features at incredibly low prices. The latest product in the wearables portfolio is the Xiaomi Mi Band 5.  In addition to fitness trackers, the Xiaomi wearable product portfolio also includes audio products. The company sells both wired and wireless headphones in various styles, including in-ear and over-ear headphones. The latest product is the Xiaomi Mi True Wireless Earphones 2. The wireless headphones look very similar to Apple’s industry-standard AirPods.

More Xiaomi products

Xiaomi is also known for its Smart TVs, which are only available in limited areas, especially in China and India. Mi-TVs usually run on the Android TV operating system, which allows you to stream media through many apps available on the Google Play Store.

For western markets – including the US – Xiaomi has decided not to offer televisions and instead offers media streamers. These devices also run on Android TV and are usually very inexpensive. The brand’s newest streamer is the Xiaomi Mi TV Stick.

Finally, Xiaomi also produces smart home products and various electrical accessories. For example, Xiaomi offers a range of innovative home products, many of which are available worldwide, including the United States. The Mi Home Security Camera is one of the many products on offer. There are also smart thermostats, smart light bulbs, and many more products. However, only certain devices are available in certain countries.

In Europe, Xiaomi is best known for its various lines of accessories. These are the easiest to get anywhere in the world. For example, you can find power banks, wireless chargers, bluetooth speakers, etc.

Buy Xiaomi shares or not? our recommendation

  • Strong growth in emerging markets
  • More and more successful in Europe
  • Still a very young company with a lot of potential
  • Apple and Samsung are investing more and more money in cheap products
  • Product longevity is not particularly good

Xiaomi share: buy or sell?

What are the advantages of buying?

Huge growth potential:  In addition to international growth, especially in the area of ​​cheap cell phones and in emerging countries, Xiaomi is also recording increased sales of Xiaomi’s higher-priced phones for the premium market. No other smartphone manufacturer is as well-positioned to benefit from the growth of India and Latin America as Xiaomi.

Xiaomi’s biggest competitor Huawei is weakening:  It looks like Xiaomi is actually benefiting from the technical cold war between the US and China. In August, the US further restricted hardware and software suppliers to Huawei, the largest smartphone supplier in China.

If Huawei’s phones become less competitive due to defective components, there could be greater opportunities for Xiaomi and the other Chinese smartphone competitors Oppo and Vivo. Huawei accounted for 45% of China’s smartphone shipments in the last quarter. Therefore, there could be good future opportunities for the other competitors if the US restrictions for Huawei persist in the long term.

Xiaomi 5G:  The increasing popularity overseas, the success with high-end phones and the possibility of taking market share from Huawei are already good arguments for buying Xiaomi. Xiaomi is also well-positioned when it comes to 5G cell phones. All current models of the Mi series are 5G compatible.

Xiaomi benefits from the coronavirus:  Xiaomi is one of the few mobile phone manufacturers currently benefiting from coronavirus and for various reasons. Initially, Xiaomi does not own any physical stores. Unlike Apple, for example, the company did not have to close any stores. Furthermore, Xiaomi’s cell phones are particularly popular in the lower and middle price segments. With rising unemployment worldwide, it can be assumed that fewer people than ever before will buy premium cell phones in the next few years. Xiaomi also benefits from this development.

What are the advantages of selling?

The competition never sleeps: Especially in times of the corona pandemic, more and more cell phone companies are working on cheap cell phones. This trend can most recently be seen with Apple and the extremely successful Apple iPhone SE 2020

Xiaomi could lose an important market as a result of this development. Moreover, Apple is also investing heavily in the Indian market. Should Apple gain a foothold there with its iPhone SE series, it would be a disaster for Xiaomi’s sales.

Xiaomi makes less profit:  Xiaomi works with very tight profit margins. According to the company, these are never higher than 5% per cell phone. This can lead to problems in the future, as the last quarterly report shows. Although sales increased 3.1% and gross margin increased slightly, adjusted net income decreased 7.2%. Due to the low net income, the shares of Xiaomi are currently relatively expensive.

Buy or not to buy Xiaomi shares Our future forecast 2021!

Xiaomi share forecast, dividend and price target 2021

The Xiaomi share is subject to the same fate as that of many other cell phone and electronics manufacturers: Apple. Apple has evolved over the past few years to become the global leader in the manufacture of cell phones and wearables

However, there is still hope for the Xiaomi share price because Apple’s products are aimed at a high-income elite, and the market for low and mid-budget devices remains open.

In addition, the smartphone market is still growing, and Xiaomi can definitely benefit from it with suitable products. If this is the case, the Xiaomi share could soon rise sharply.

Xiaomi share future forecast 2021:

Xiaomi is also a relatively young stock that has only been tradable for a relatively short time, which is why forecasts are still relatively difficult now. At the moment, only 3 Wall Street analysts have published their forecast for the Xiaomi share.

Of the 3 analysts, 2 analysts give a buy recommendation and 1 analyst a sell forecast. The last changes made by the analysts in 2020 were all improvements to the forecast.

It remains exciting to follow the development of individual cell phone manufacturers. Our forecast is that the Xiaomi share can be an interesting investment in the medium to long term, with which one could achieve good returns.

Xiaomi share dividend 2016 to 2021:

Dividend per share (CNY)Return in%Year
** 0.01** 0.032021e
2020e
2019
2018
2017
2016

Xiaomi is currently not paying any dividends. However, it is expected that the first dividend payment of CNY 0.01 per share will be made in 2021, which would result in a yield of 0.03%.

Xiaomi share price target

The numbers expected by the analysts speak unequivocally for a continuation of the recent Xiaomi success story. Of the currently 40 analysts who rate the Xiaomi share, 23 analysts have a “Buy” rating, 5 analysts have an “Overweight”, 6 have a “Hold”, and 0 analysts have an “Underweight” rating. The remaining 4 analysts currently rate the Xiaomi share as a “sell”. This results in an “Overweight” rating for Xiaomi as an average rating by analysts.

The analysts also see the Xiaomi share price target as positive. For the next year, the analysts give the Xiaomi share a median price target of HKD 26.40.  That would be a slight increase from the current price of HKD 26.30. The highest analyst target price for the Xiaomi share stands at 34.30 HKD. That would be a significant increase compared to the current price. The worst price target of an analyst sees the Xiaomi share in a year at 14.18 HKD.

Xiaomi vs. other electronics manufacturers stocks

The electronics market is highly competitive. How well does Xiaomi share compared to other well-known electronics manufacturers? Is Xiaomi a better investment than Apple?

Apple stock

  • Apple is a cult and has been a safe investment for decades
  • Apple pays a good dividend
  • The sales of the iPhone SE range were impressive
  • The new ARM laptops can be an absolute game-changer
  • Global smartphone saturation is also evident at Apple
  • The coronavirus is reducing the demand for luxury products
  • The Apple stock is currently costly from a fundamental point of view

Lenovo share

  • Second largest PC provider worldwide
  • Diversified company
  • Regular dividend
  • Cheap share
  • Weak growth
  • Customer service and product longevity are not particularly good
  • Apple is gaining more and more market share in the laptop market

Samsung share

  • Diversified company
  • The share is in a strong upward trend
  • Second largest cell phone manufacturer in the world
  • Regular dividend
  • Lower growth than the competition
  • Huawei and Xiaomi are increasingly gaining market share
  • From a fundamental point of view, an expensive share

Fees when buying Xiaomi shares

We compare the fees of the largest brokers with the following example:

  • Purchase of Xiaomi shares worth € 1,000
  • Hold the Xiaomi share for one month and then sell
  • No course changes in the 30 days

With these assumptions, we now compare the fees of Libertex, ETFinance & Plus500:

ProvidersLibertexETFinancePlus500
DepositFor freeFor freeFor free
Purchase fees€ 2.20free3.08%
Holding feesfor freefree0.05%
Sales charges€ 2.20Spreads3.08%
Total fees€ 4.40Reasonable€ 92.32

Xiaomi share conclusion: our analysis and recommendation

The Xiaomi share is extremely interesting security. Especially because it is still one of the lesser-known investments among many Western investors, but Xiaomi is already one of the most prominent players in the mobile phone market.

The prognosis for the Xiaomi company for the next few years looks good. After all, the smartphone manufacturer is ideally positioned to generate good profits in currently growing regions and to expand its market position further.

It is essential for shareholders to know that the company behind the share has a wide range of products and services and that a sudden decline cannot be expected. Xiaomi is one of the market leaders when it comes to smartphones. Therefore, it is noticeable that this company has to accept far less criticism than comparable companies such as Huawei.

Now every investor has to decide for himself whether the hope of an improvement in the share price in the future justifies an investment. However, given the relatively low price for which you can get this security in your custody account, this risk is unlikely to be of any significance.

If you want to buy the Xiaomi shares, we advise you to do so with our test winner broker, ETFinance, because ETFinance pays 0% commission when buying shares.

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FAQs

According to experts and analysts, most of the signs point to Buy. The share is currently also showing a clear upward trend. The paper has now moved away from the issue price by more than 100%. If the company can maintain the current big growth trend, Xiaomi could become even more successful in the future!

Definitive! The top is far from being reached for the Xiaomi share and further growth is more than likely. In addition to a large addressable market, the company has a good market position in emerging and booming regions such as Latin America and India.

Xiaomi has not yet been listed on any American stock exchange since it went public. Trading takes place through intermediaries or the Hong Kong Stock Exchange.

We generally recommend not investing more than 5% of the capital in a share. How much you invest in a particular stock is ultimately up to the investor. There is always a risk!

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