Xiaomi Shares: Are such actions permissible?

In the competitive world of smartphone manufacturing, Xiaomi, one of the world's largest smartphone manufacturers, has found itself in a grey area with its advertising tactics. The company has been compared to industry giants Apple and Samsung, but its aggressive approach has sparked legal disputes.

Recently, Xiaomi's advertisements have claimed that its smartphones, specifically the Xiaomi 15 and 15 Pro, boast superior cameras and overall superiority compared to devices from Apple and Samsung. However, these claims have not gone unchallenged. Apple and Samsung have filed lawsuits against Xiaomi, alleging that the ads could damage their respective images and contain false information.

The lawsuits allege that Xiaomi's ads could mislead consumers about the quality of its devices and the performance of its cameras, specifically comparing the iPhone 16's camera to being "cute." The outcome of these lawsuits remains to be seen.

Despite the legal challenges, Xiaomi continues to aim for market share growth. This week, Xiaomi's stock price closed at 5.80 euros at local exchanges. However, the stock price has been stuck in a sideways trend for weeks, reflecting investor uncertainty due to the ongoing legal disputes.

Interestingly, Xiaomi's growth in the last smartphone quarter was modest, with a decrease of nearly eleven percent compared to six months ago. However, the attention received by Xiaomi due to the lawsuits could potentially work in its favour, increasing its visibility in the highly competitive smartphone segment.

This confrontational approach is not new for Xiaomi. Earlier this year, a similar confrontational approach was evident in India. Xiaomi's aggressive marketing strategy has been a key factor in its rapid growth, but it seems that the company may need to tread carefully to avoid further legal issues.

As the legal battles unfold, it will be interesting to see how Xiaomi navigates these challenges and how it affects the company's future growth and reputation.