Jefferies released a report stating that Xiaomi Group's second-quarter results may fall short of expectations due to weak smartphone demand, lowering its target price from HK$73 to HK$69.85. The report maintains a "buy" rating. The report states that third-party data and industry surveys indicate that global smartphone demand will be weak in the second quarter of 2025, with some forward demand in the US market. Android device inventories are high, particularly in emerging markets such as Southeast Asia and India. The report lowered Xiaomi's smartphone revenue forecast for the second quarter of 2025 by approximately 5% and its gross profit margin forecast by 0.5% to 11.8%. Due to a more pessimistic view of global smartphone demand and the competitive landscape, the company also slightly lowered its long-term smartphone gross profit margin forecast to below 12%.