Track Hyper | Xiaomi's market value exceeds one trillion: Who benefits from the explosive sales of the 15 series?

Author: Zhou Yuan / Wall Street News

On February 4th, Xiaomi Corporation's stock price broke through HKD 40 during trading, and its market capitalization surpassed HKD 1 trillion for the first time.

Since the national subsidy was implemented on January 20th, based on information from comprehensive terminal stores and the supply chain, Goldman Sachs believes that smartphones priced between RMB 3,300 and RMB 6,000 will benefit the most, with Xiaomi Corporation expected to be the main beneficiary, a view that has been validated by the market.

Wall Street News learned from the supply chain that on the day the Xiaomi 15 series was launched (January 20th), sales surged by 92%-115% compared to January 19th.

By the end of January, sales of the Xiaomi 15 series had reached several million units. Additionally, from the launch of the national subsidy until early February, among the top 20 smartphone models by sales, the Xiaomi 15 (flagship model) was the only flagship model with a memory capacity of 512GB.

On the first day of the national subsidy policy for smartphones, Xiaomi Home stores in Beijing saw mobile phone sales reach five times the usual weekend sales for the entire day, with the standard version of the Xiaomi 15 small-screen flagship accounting for as much as 60%-70% of sales, and the day's GMV (Gross Merchandise Volume) exceeded RMB 10 million.

On January 20th, the National Development and Reform Commission (NDRC) announced a new subsidy plan for digital products, including smartphones, tablets, and smartwatches (including wristbands), which offers a 15% price subsidy per category, with a maximum of RMB 500 per item.

According to previous information disclosed by Xiaomi, the Xiaomi 15 series achieved sales of over one million units in less than ten days since its launch, setting a new sales record for Xiaomi's flagship models.

Moreover, the activation volume of the Xiaomi 15 series continues to rise, especially in the first week of 2025, where mobile phone activations surged by 20%, capturing approximately 16% market share, achieving a significant growth of over 20% compared to the same period in 2024.

Supply chain insiders told Wall Street News, "About 90% of the production capacity for the Xiaomi 15 series high-end smartphones is completed by OEM companies, with the remaining portion produced by Xiaomi's own factories." However, Wall Street News did not receive confirmation from Xiaomi Corporation.

According to the latest data from Counterpoint, in the fourth quarter of 2024, Huawei ranked first with an 18.1% market share, followed closely by Xiaomi at 17.2%, while vivo and OPPO held fourth and sixth positions with market shares of 16.3% and 12.5%, respectively.

Xiaomi's performance in the global market is also impressive, maintaining its position as the third-largest smartphone manufacturer in the world, with a market share of 14% and a growth rate of 12%.

Currently, companies engaged in smartphone OEM business in China include BYD Electronics, Lens Technology, Huaqin Technology, Longqi Technology, Wingtech Technology, and Tianlong Mobile.

According to the Ministry of Industry and Information Technology, the company responsible for OEM production of the Xiaomi 15 series is Lens Technology's subsidiary "Lens Technology (Xiangtan) Co., Ltd."; this company also provides various precision components such as panel glass, battery covers, middle frames, camera decorations, and complete assembly services exclusively for the Xiaomi 15 series Previously, the Xiaomi 14 series was exclusively assembled by Lens Technology.

Since taking over Flex in 2021, Lens Technology has begun to engage in the assembly of Xiaomi smartphones. In 2021, Lens Technology participated in the assembly of some Redmi phones.

This subsidiary plays a specific business function and role in Lens Technology's overall strategic layout, mainly responsible for the assembly of various smart terminals such as smartphones, tablets, wearable devices, automotive electronics, smart home appliances, and medical equipment.

Lens Technology's 2023 annual report states, "In the fields of consumer electronics and new energy vehicles, the company has made significant progress in product line expansion and has become a one-stop ODM (Original Design Manufacturer) precision manufacturing platform that provides comprehensive services including design, research and development, production, and system assembly."

The annual report mentions that in the assembly field, Xiangtan Lens continuously optimizes efficiency, yield, and quality, gaining recognition and trust from domestic and international clients, and has successfully assembled multiple high-end phones and components in bulk, achieving the annual operational goal of turning losses into profits on schedule.

In the third quarter of 2024, Lens Technology reported a quarterly gross margin of 21.43% and a net margin of 8.8%