Furthermore, smartphone innovation by the company appears to be slowing. "Xiaomi was surprisingly was one of the last Chinese brands to bring fingerprint sensor to its phone and thus brands such as Huawei, Lenovo and OPPO have leapfrogged in mindshare and market share. In June, OPPO surpassed Huawei and Xiaomi to become the leading brand in China," said Shah. As a result, he forecasts Xiaomi's smartphone shipments to grow a modest 2-5 percent this year. On a brighter note, there was strong speculation CEO Lei would present the brand's first-ever laptop on Wednesday.