Indeed, new phones may temporarily boost sales but to regain market share, Xiaomi needs to rethink its overall channel strategy, according to Frost and Sullivan.
"Xiaomi's sales have been skewed towards cheaper models such as Redmi 3 and Redmi Note 3, which are sub-$150 smartphones, and as a result Xiaomi has lost mindshare in high- to premium-tier phones," echoed Neil Shah, research director of devices and ecosystems at Counterpoint Research.
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.
If Xiaomi released a hybrid notebook—a laptop and tablet in one device—that would suit the firm's Internet of Things (IoT) ecosystem, according to Shah.
Over the past 12 months, Xiaomi has diversified its product range by entering the "connected hardware" space, producing smart home appliances that ranged from kettles to drones to mosquito repellents. "It's hoped that this diversification will help Xiaomi find an unique position to keep revenues afloat, be on the consumer's mindshare and cross-sell more devices from the Xiaomi IoT ecosystem," Shah explained.
Moreover, a Xiaomi laptop might be well received considering the brand's ability to take Linux mainstream and the slowing global laptop market could also , Frost and Sullivan said.
—Follow CNBC International on Twitter and Facebook.