APPLE Inc.’s sales dip in China is providing an opportunity for yet another local Android smartphone maker to win favor with customers and investors.

Xiaomi Corp. has gained about US$20 billion in market value since a June low on excitement over its latest handset as well as forays into electric vehicles (EVs) and other businesses.

Xiaomi’s Hong Kong-listed stock rose more than 60% in that span, making it the best performer on the Hang Seng Tech Index.

Chinese Android makers are capitalizing as Apple posts sliding revenue in the country, even amid signs that Asia’s largest smartphone market is starting to bottom out after years of decline.

Xiaomi’s 14 series has received over one million orders since its late-October launch. That marks the second smash debut for a Chinese smartphone in just the past few months, following Huawei Technologies Co.’s success with the Mate 60 Pro.

Huawei is unlisted, but investors have been snapping up shares of its suppliers.

While Xiaomi’s stock has surged on the stellar 14 series orders, some analysts say it’s poised to climb even higher. EVs and the so-called “artificial intelligence of things” (AIoT) are seen as potential additional catalysts.

“We believe there is a trading opportunity in the next six months with smartphone and AIoT growth turnarounds and early expectations building for Xiaomi’s electric vehicle foray,” Gokul Hariharan, an analyst at JPMorgan Chase & Co. wrote in a note last week, upgrading the stock to overweight.

Other Wall Street firms, including Morgan Stanley and Citigroup Inc., have cited signs of an end to China’s smartphone downturn and a likely recovery into next year.

Huawei’s strong comeback has helped triggered Chinese consumer appetite for innovative local products.

“Huawei is clearly gaining ground rapidly following the new product launch featuring its unique camera function and satellite calling,” said Jian Shi Cortesi, a fund manager at GAM Investment Management.

“iPhone sales are losing momentum in China at the moment, as many consumers don’t perceive much functionality improvement in the new iPhone.” (SD-Agencies)