Finimize - 📉 Xiaomi loses out to Apple

Hi Reader, here's what you need to know for May 20th in 3:01 minutes.

♻️ Why choose between big bucks and good ethics? Join Daizy.com’s Deborah Yang for How To Pick Winning ESG Stocks on Friday, and find out how to find the sustainable stocks that’ll pay off for you and the planet. Grab your free ticket

Today's big stories

Chinese smartphone maker Xiaomi posted a drop in quarterly revenue
The dollar has been rallying in the past year, and it might be exactly what your portfolio needs – Read Now
EasyJet gave an upbeat update as travel demand continues to pick up

Stage Freight

What’s Going On Here?

Chinese electronics giant Xiaomi reported its first quarterly drop in revenue on record on Thursday.

What Does This Mean?

The entire smartphone industry is already being pummeled by a lethal mix of shortages, European war, and dwindling consumer confidence. But China’s smartphone makers have had another challenge to contend with in the form of Covid lockdowns, which have reduced both production and demand to rubble. That led Xiaomi to ship 18% fewer smartphones last quarter than the same time in 2021, and its sales to fall around 5%. Not ideal, given that it’s now lost even more ground to market leaders Samsung and Apple. And even if lockdowns do ease up, analysts think higher costs could leave the company struggling to get profitability anywhere near last year’s lofty heights. Investors said thanks, but no thanks: they sent its stock down 5%

Why Should I Care?

The bigger picture: Xiaomi needs a breath of fresh air.
Xiaomi’s smartphone business makes up around 60% of its total sales, so it follows that this slowdown has it looking to other segments to pick up the slack. It’s been putting more emphasis on smart TVs, tablets, and laptops, which have long been staples on its shelves. But it’s also trying to boost sales of its digitally connected devices: think doorbells and obnoxiously expensive air conditioners.

Zooming out: Does Xiaomi dream of electric vehicles?
Xiaomi has irons in the EV fire too: the company committed last year to investing $10 billion in the space, and announced plans to launch its first vehicle by 2024. If that happens, Xiaomi will be going head to head with established carmakers like Hyundai. That’s no mean feat: the carmaker said this week that it’ll be spending nearly $17 billion to boost production in South Korea, taking it from 350,000 EVs a year to 1.4 million by 2030 (tweet this).

You might also like: What investors are getting wrong about the EV market right now.

Copy to share story: https://www.finimize.com/wp/news/stage-freight/

🙋 Ask a question

Analyst Take

The Dollar Could Lift Up Your Portfolio

Stéphane Renevier, Analyst

Plenty of markets have fallen in the past year, but the US dollar isn’t one of them.

The greenback is up 15% from a year ago, as investors have scrambled for the refuge of the safe haven. And that rally’s showing no signs of letting up.

That’s not great news for the global economy: a stronger dollar is boosting inflation abroad, forcing central banks to hike interest rates even more than they might’ve done otherwise.

But while it could ultimately end up tipping the economy into recession, it could also be the asset your portfolio needs to survive it.

So that’s today’s Insight: why the dollar could be the disease and the cure.

Read or listen to the Insight here

Magnify your trading potential

Buying into the world’s biggest companies can be a costly move.

But with regulated broker Tickmill, you can trade 100 coveted CFD stocks like Microsoft, Tesla, Amazon, Netflix, and Coca-Cola for a fraction of the cost by using leverage.

Now, leverage magnifies both losses and profits, so you might want to test it out first. And as luck would have it, you can try it for free with Tickmill’s demo account.

And when you’re ready for live trading, you’ll benefit from ultra-fast execution and zero commission on trades on Tickmill’s MT5 platform*.

You can get started with a $100 minimum deposit.

Discover Tickmill

*Zero Commissions on CFD Stocks on PRO and VIP accounts.

Risk Warning: Trading financial products on margin carries a high degree of risk and is not suitable for all investors. Losses can exceed the initial investment. Please ensure you fully understand the risks and take appropriate care to manage your risk. The material provided is for information purposes only and should not be considered as investment advice.