Damo: It is expected that the sales price of the Xiaomi Group-W (01810) mobile phone will increase significantly, which will help pass on the memory cost pressure rating “gain”

The Zhitong Finance App learned that Morgan Stanley released a research report saying that with the sharp rise in memory costs, it is believed that companies with better product structures and higher average sales prices will be more conducive to passing on cost pressure. After comparing the average price trends of various brands since 2016, the bank found that the average price increase of Xiaomi Group-W (01810) was the most significant among peers using Android systems in the mainland. It now targets a target price of HK$62 and an “increase” rating.

Considering that in the third quarter of this year, the average sales price of Xiaomi in the mainland market has surpassed OPPO, Vivo, and Honor. The bank believes that the company will pass on costs more effectively next year, and the high-end smartphone strategy that Xiaomi continues to promote may also bring additional support. The bank also expects Xiaomi to pay more attention to average sales prices and profit margins in overseas markets rather than market share, which will also help it cope with rising cost pressure.