Xiaomi's High-End Push Gets A Massive Vote Of Confidence From Goldman Sachs
In a research note that is turning heads, Goldman Sachs analysts on October 23, 2025, declared that the premiumization strategy of Xiaomi is not only on track but is accelerating, providing a strong "BUY" signal on the Chinese tech giant. The note, published just after Xiaomi launched its new Redmi K90 series, highlights the company's successful penetration into the high-end smartphone market—a segment long dominated by Apple and Samsung.
The report is significant because it provides a data-driven validation of a strategy many were skeptical of: transforming a brand known for value-for-money into a genuine premium contender. As Xiaomi's new Redmi K90 Pro Max breaks the RMB 4,000 (approx. US$555) price barrier for the first time—a psychological and strategic milestone for its sub-brand—Goldman argues this is just the latest proof point in a much larger, and successful, corporate evolution.
The Premium Push Is Already Working
While the new Redmi K90 is catching headlines, Goldman analysts point to the blockbuster performance of the flagship Xiaomi 17 series as the real story. The company isn't just selling more phones; it's selling significantly more expensive models, fundamentally altering its revenue and profit mix. The bank notes a dramatic shift in consumer preference toward Xiaomi's higher-end offerings.
As Goldman's Timothy Zhao writes:
"Xiaomi 17 series have seen c.30% higher shipments vs. prior generation and more favorable mix (i.e. 17 Pro series shipments almost triple vs. prior version and contribute to 80%+ of total shipments as of late) leading to 40%+ higher sales amount by GSe, and has successfully penetrated into Rmb6k+ ASP segment with 17 Pro Max accounting for 45% of sales volume."
This success has been bolstered by a steady flow of users from rival brands, including a notable cohort of former iPhone owners now switching to Xiaomi's top-tier devices, a trend that Goldman highlights is accelerating.
"Xiaomi continues to see net user inflow from other brands of 12mn in 9M25, with user inflow from iPhone into Xiaomi 17 Pro series almost doubling vs. prior generation."
An Ambitious Roadmap to Topple Giants
Emboldened by these results, Xiaomi has laid out an aggressive roadmap for capturing significant market share in China’s most lucrative smartphone segments. These are not modest goals; they represent a direct assault on the market share of established premium players.
Goldman details the specific targets laid out by Xiaomi's President:
"1) within the Rmb4-6k segment of which TAM is 30mn+ in China, aiming for c.30% market share (c.10mn units) vs. 18% in 2025 (c.6mn units)... 2) within the Rmb6k+ segment of which TAM is 50mn+, aiming for c.10% market share (5-6mn units) vs. 2-3% currently (c. 1mn units), or 15mn+ units in a bull case... 3) self-developed chips and HyperOS as infrastructure, with AI (including Xiaomi’s proprietary LLM) providing proactive intelligence experience to the holistic 'Human x Car x Home' ecosystem."
The Upcoming Singles' Day Test
The next major catalyst and test for this strategy is the upcoming Singles’ Day online shopping festival. Xiaomi is clearly aiming to press its advantage, announcing a record-high subsidy to entice consumers. This period will serve as a crucial real-time indicator of demand for both its new and existing product lines.
Goldman is watching closely for the initial sales data, noting the increased stakes this year:
"Xiaomi 1) has announced a record-high subsidy of RMB 2 billion yuan (US$278 million) (vs. Rmb1.3-1.6bn over the past 3 years); 2) provides bigger discount on smartphones due to the 1-month earlier timeline of new product releases in 2025... We expect the first datapoint likely to be released on Nov 1... which will provide better visibility into Xiaomi’s smartphone and AIoT sales growth in 4Q25E."
For investors, the takeaway from Goldman is clear. The recent product launches and aggressive sales tactics are not isolated events but are core components of a well-executed, multi-year strategic pivot. The bank concludes that Xiaomi is still in the early innings of unlocking the full potential of its vast, interconnected ecosystem.
"We see Xiaomi, which is the world’s #3 smartphone brand... as still in the early stages of a multi-year ecosystem expansion (GSe 26%/37% revenue/EPS CAGRs in 2024-27E) against the backdrop of its well-executed 'Human x Car x Home' strategy... we believe Xiaomi is well positioned to build one of the largest consumer physical intelligence ecosystems globally leveraging its interconnected consumer terminals. We are Buy rated."