Xiaomi has reported strong revenue growth in the fourth quarter of 2025, despite pressure on its smartphone business, though rising component costs weighed on profitability.
Q4 2025 Financial Highlights
Xiaomi posted revenue of RMB 116.9 billion in Q4 2025, while adjusted net profit reached RMB 6.3 billion. Despite solid top-line performance, the company recorded its first quarterly profit decline in three years, reflecting margin pressure from higher memory chip costs.
Full-Year 2025 Performance
For the full year, Xiaomi delivered 25 percent revenue growth to RMB 457.3 billion, with annual net profit rising 43.8 percent to RMB 39.2 billion. The results indicate strong overall business momentum driven by diversified revenue streams.
Xiaomi’s smartphone business delivered steady performance in 2025, generating revenue of RMB186.4 billion and global shipments of 165.2 million units. The company maintained its position among the top three global smartphone vendors for the fifth consecutive year, with a market share of 13.3 percent, reflecting its continued competitiveness in the global market, according to Omdia.
In the Chinese Mainland, Xiaomi ranked second in smartphone shipments, achieving a market share of 16.6 percent, which increased by 0.7 percentage points year-on-year. The company also strengthened its global footprint, ranking among the top three smartphone brands in 58 countries and regions and among the top five in 70 markets worldwide.
Xiaomi saw strong momentum in key international regions. It climbed to second place in Latin America and Southeast Asia, with market shares of 17.5 percent and 17.0 percent respectively. In Europe and Africa, Xiaomi ranked third, with market share reaching 20.3 percent and 12.7 percent, supported by year-on-year gains.
The company’s premiumization strategy delivered notable results. Premium smartphones priced at or above RMB3,000 accounted for a record 27.1 percent of total smartphone shipments in the Chinese Mainland. In the RMB4,000 to RMB6,000 segment, Xiaomi achieved a market share of 17.3 percent, highlighting growing acceptance of its higher-end devices.
Xiaomi’s core smartphone segment shipped 165.2 million units globally in 2025, falling short of its 180 million unit target. The shortfall highlights intensifying competition and softer demand in key markets.
Revenue from Xiaomi’s IoT and lifestyle products reached a record high of RMB123.2 billion in 2025.
Cost Pressures and Pricing Strategy
Rising memory chip prices, driven partly by increasing AI demand, impacted margins. Xiaomi indicated it may adjust pricing strategies if component cost pressures persist.
AI Investment Plans
Xiaomi plans to invest at least RMB 60 billion over the next three years in artificial intelligence, reinforcing its long-term focus on integrating AI across devices, services, and vehicles.
BABURAJAN KIZHAKEDATH
