Chinese mobile manufacturer Xiaomi Inc is upping the ante with plans to introduce more than 10 5G gadgets next year, chief executive officer Lei Jun said on Sunday, in response to the market's intense competition.
Lei's remarks during the Eastern Chinese City of Wuzhen's World Internet Conference come after competitor Huawei Technologies disclosed it was launching a new lineup of handsets as the smartphone battle heats up its home turf.
Xiaomi launched the Xiaomi Mi 9 Pro last month, the company's first 5G-enabled phone. "Industry players are very concerned that 4G equipment will not be available next year; this is a move that you have no choice but to take," Lei said.
Xiaomi's share price has slowly dropped over the past year as China's mobile market is growing at a rapid pace. The company announced in September that it was planning a $1.5 billion share buyback.
Xiaomi controlled almost 12 percent of China's smartphone market in the second quarter of 2019, down from nearly 14 percent a year ago, according to research firm Canalys.
While customers flocked to Huawei, driven in part by nationalism, all other top Chinese companies experienced declining sales volumes.
The smartphone manufacturer headquartered in Shenzhen became the focus of friction between the U.S. and China in May when Washington essentially called for U.S. companies to stop selling parts to it.
Xiaomi has enjoyed success in Europe, however, where the company remains a relatively new player on the continent.
Over the second quarter this year, the company's market shares in the area reached 9.7 percent, up from 6.6 million the year before, rendering it one of the region's fastest-growing mobile brands.
Over the past five bars, Xiaomi Corporation's shares trended down, showing bearish momentum for the shares as they ran -3.72 percent for the week.
Currently, Xiaomi Corporation has a 14-day Commodity Channel Index of -166.15. The CCI technical gauge is a key factor to measure if a stock is oversold or overbought.
Meanwhile, Chinese bourses have amended certain policies that would let dual-class shares to be included in the Stock Connect platform for the first time, potentially giving advantage to big-name tech companies like Xiaomi Corp and Meituan Dianping to boost their stock ratings.
Xiaomi's shares soared by 6.8 percent, its highest one-day percentage leap since September 3, to an intraday peak of HK$9.13 in Hong Kong, after one of the world's largest mobile manufacturers' top executives announced the company's planned release of 10 new models based on 5G technology.
