Xiaomi phone shipments sink 26% as prices hit record high

Xiaomi unveiled the Xring O3 chip, its second in-house smartphone processor, aiming to strengthen its supply chain. TSMC will manufacture the chip using 3-nanometre technology, according to sources. The chip may power Xiaomi's upcoming folding phone, with shipment targets of 200,000-300,000 units. Xiaomi's Xring O1 chip has surpassed 1 million cumulative shipments across devices. Xiaomi and TSMC did not comment on the specifics.

Xiaomi's stock dropped 4.1% to HK$27.84 after recalling EVs in China due to door-handle safety issues, affecting several other automakers. The recall involves door handles that may be difficult to open in emergencies. The decline also occurred amid a broader selloff in Hong Kong tech stocks, with the Hang Seng index falling 2%.

Tesla is recalling 2.98 million vehicles in China, including Models 3, Y, X, and S, due to door handle safety risks. Chinese authorities also announced recalls from other carmakers like Xiaomi, Leapmotor, Geely, and XPENG. The recalls follow planned regulations banning hidden door handles, which could hinder escape in emergencies. Tesla will address the issue with software updates.

Xiaomi is set to report Q2 results Aug 18. Shares in Hong Kong have risen nearly 20% since late June after prior losses tied to weak smartphone demand and high component costs. Analysts expect sales to fall 6.6% and gross margin 20.4%. EV delivery target 550,000 units may be harder, per Bernstein. Options imply a 3.6% post-earnings move.

Haleon's H1 2026 operating margin expanded 160 bps to 24.3%, driven by cost savings, but organic sales growth was 2.6%. Jefferies notes strong execution but questions growth investment. Q2 sales grew 3.1%, with varied performance across segments. Jefferies raised its price target to 410 pence, citing 13% upside.

TrendForce projects NAND flash contract prices to rise 10% to 15% this quarter, down from 70% to 75% last quarter. Sandisk (SNDK), heavily reliant on NAND pricing, reported Q4 2026 revenue of $8.97B, up 51% QoQ and 372% YoY, with gross margin at 84.6%. The company expects Q1 2027 revenue of $10.3B to $10.8B and adjusted gross margin of 83% to 85%.