Xiaomi strengthened its position in the global smartphone market in the second quarter of 2026, generating RMB42.1 billion in smartphone revenue despite rising memory costs and intense competition.
Global Xiaomi smartphone shipments reached 31.2 million units, while an improving product mix pushed average selling prices to a record level.
The smartphone business remains the largest contributor to Xiaomi’s smartphone × AIoT segment, which generated RMB84.0 billion in revenue during the quarter ended June 30, 2026.
Xiaomi’s premiumization strategy was particularly visible in its pricing performance. The global average selling price of Xiaomi smartphones increased 25.9 percent year over year to a record RMB1,351 during the second quarter.
The combination of higher ASP, premium-device expansion and continued global scale indicates that Xiaomi is attempting to strengthen smartphone revenue quality rather than relying exclusively on shipment volumes.
Xiaomi Maintains Global Top-Three Smartphone Ranking for 24 Quarters
Xiaomi continued to rank among the world’s three largest smartphone vendors during the second quarter. According to Omdia, Xiaomi has now maintained a top-three global smartphone shipment position for 24 consecutive quarters.
The company’s geographic reach also remained extensive. Xiaomi smartphone shipments ranked among the top three in 53 countries and regions and among the top five in 67 countries and regions during the quarter.
Xiaomi achieved the No. 2 smartphone shipment position in Southeast Asia, Latin America and the Middle East, highlighting the importance of overseas markets to its smartphone strategy.
Xiaomi Smartphone ASP Rises 25.9% to Record RMB1,351
One of the most significant developments in Xiaomi’s smartphone business was the sharp improvement in pricing.
Global smartphone ASP increased 25.9 percent year over year to RMB1,351, reaching an all-time high for Xiaomi. The increase came as the company adjusted its global product mix and pricing strategy in response to higher component expenses, particularly memory costs.
The ASP increase is strategically important because Xiaomi has historically competed strongly in affordable and mid-range smartphones. Increasing the contribution from premium devices could support smartphone revenue and profitability even when the broader market faces shipment pressure.
Xiaomi’s 31.2 million smartphone shipments at an ASP of RMB1,351 demonstrate the growing financial significance of its premiumization strategy.
Premium Smartphones Reach Record 32.1% of Xiaomi’s China Sales
Xiaomi also made measurable progress in China’s premium smartphone market.
In the Chinese Mainland, smartphones carrying retail prices of RMB3,000 or more represented a record 32.1 percent of Xiaomi’s total smartphone units sold during the second quarter. The premium segment’s contribution increased 4.5 percentage points year over year.
The figures indicate that nearly one-third of Xiaomi’s smartphone unit sales in its home market have moved into the RMB3,000-and-above category.
Xiaomi also expanded its position in the important RMB3,000–4,000 smartphone price segment, where its market share reached 16.2 percent, an increase of 3.3 percentage points year over year.
The gains suggest that Xiaomi’s strategy of moving customers toward more expensive devices is translating into both higher premium-device penetration and increased market share.
Xiaomi 17T Series Expands Premium Smartphone Portfolio
Xiaomi continued its premium-product push with the launch of the Xiaomi 17T Series in May 2026. Positioned as an all-in-one imaging flagship smartphone, the series expands Xiaomi’s premium portfolio and is designed to increase the contribution of higher-end smartphone shipments in overseas markets.
Premium devices are becoming increasingly important to Xiaomi because they can help offset pressure from rising memory and other component costs while increasing smartphone ASP.
The second-quarter figures provide evidence of this transition: smartphone ASP climbed 25.9 percent, smartphones priced at RMB3,000 or above reached 32.1 percent of China unit sales, and Xiaomi captured 16.2 percent of the RMB3,000–4,000 segment.
AI Becomes a Bigger Part of Xiaomi’s Smartphone Strategy
Artificial intelligence is becoming an important differentiator for Xiaomi smartphones. The company’s self-developed Xiaomi MiMo-V2.5 large model reached 10.5 trillion tokens in weekly usage on OpenRouter between July 20 and July 26, 2026, ranking No. 1 on the platform during that period.
In July 2026, Xiaomi’s MiMo on-device model completed China’s national large-model filing procedures.
The Xiaomi 17 Max was also among the first smartphones to receive Level 3 certifications under China’s national standards for the “Intelligence Grading of Artificial Intelligence Terminal,” strengthening Xiaomi’s positioning around on-device AI capabilities.
Xiaomi followed this development in August 2026 with the beta launch of Xiaomi HyperOS 4. The operating system incorporates Xiaomi Hyper XiaoAi 2.0, powered by the Xiaomi MiMo large model, as Xiaomi seeks to integrate generative and device-level AI more deeply into its smartphone ecosystem.
Xiaomi Smartphone User Base Supports Internet Services Growth
Xiaomi’s large installed smartphone and device base continues to support its internet services business. In June 2026, Xiaomi’s global monthly active users reached a record 766.5 million, while MAU in the Chinese Mainland reached a record 197.7 million.
Internet services generated RMB9.0 billion in revenue during the second quarter, with a gross profit margin of 76.8 percent, an improvement of 1.4 percentage points year over year.
Although internet services are reported separately from smartphone revenue, the expanding Xiaomi user base demonstrates the longer-term monetization opportunity created by smartphone sales through software, applications, advertising and other digital services.
Xiaomi’s AI Assistant reached 174.9 million monthly active users in June 2026, increasing 14.2 percent year over year, providing another indicator of engagement across Xiaomi’s smartphone and connected-device ecosystem.
Xiaomi R&D Spending Reaches RMB9.2 Billion
Technology investment remains central to Xiaomi’s effort to compete in premium smartphones and AI-enabled devices. Xiaomi spent RMB9.2 billion on research and development in the second quarter of 2026, an increase of 18.9 percent year over year.
R&D expenditure exceeded RMB18 billion during the first half of 2026, supporting investments across smartphone technologies, artificial intelligence, operating systems and other core technologies.
For Xiaomi’s smartphone operation, the second-quarter numbers show a business increasingly focused on value rather than shipment volume alone. Smartphone revenue of RMB42.1 billion, shipments of 31.2 million units, a record RMB1,351 ASP, 32.1 percent premium-device contribution in China and a 24-quarter run among the global top three demonstrate the scale of Xiaomi’s smartphone business and the progress of its premiumization strategy.
BABURAJAN KIZHAKEDATH
