Investing.com -- Xiaomi set out ambitious targets at its Investor Day, with plans to expand, boost investment in artificial intelligence, and turn a profit in its electric vehicle business by the second half of next year.
The Chinese electronics maker expects revenue to grow over 30% in 2025, with adjusted net income rising more than 40%, according to Bernstein.
Smartphone shipments are guided at 175-180 million units, implying 4-7% growth, while average selling prices are seen rising 3-5%.
Xiaomi (OTC:XIACF) is aiming for 200 million units in the longer term.
In its Internet-of-Things (IoT) segment, the company expects revenue growth of over 30% and a 2-2.5 percentage point margin improvement.
Xiaomi is also pushing ahead with its "New Retail" strategy in China, targeting 20,000 Mi Home stores by end-2025 and 30,000 in the longer term.
Macquarie said Xiaomi is using this strategy to expand market share and will now apply the same model to overseas markets, focusing on Africa, Latin America, Southeast Asia, and Europe.
It expects Xiaomi to build out localized operations and gradually open Mi Home stores in these regions.
Xiaomi reaffirmed its confidence in the premiumization of its product line and its broader Human x Car x Home ecosystem strategy, combining smartphones, vehicles, and smart home devices.
The company’s EV unit, which launched the SU7 sedan earlier this year, plans to launch the YU7 model in July. Initial interest for YU7 has been three times that of SU7, according to Macquarie, suggesting an expanded customer base.
Management expects the EV business to break even by the third or fourth quarter of 2025.
Xiaomi also plans to double R&D spending over the next five years to RMB 200 billion, with over RMB 30 billion earmarked for 2025. A quarter of that will be focused on AI, particularly large language models and intelligent driving systems.