Xiaomi’s Q1-2025 results reflect a company in the midst of a remarkable growth phase, driven by its diversified strategy across smartphones, AIoT, EVs, and core technologies. The results reveal a strong execution of its “steadfastly forging ahead” strategy, positioning Xiaomi as a serious contender in multiple high-growth sectors.
Financial Performance: Strong Momentum Across Segments
Xiaomi’s total revenue surged to a record RMB111.3 billion in Q1-2025, up 47.4 percent year-over-year. This is a remarkable feat, reflecting the breadth of Xiaomi’s portfolio and its ability to scale operations across key markets. The net profit also hit a new high at RMB10.7 billion, a 64.5 percent increase, highlighting improved operational efficiency and higher-margin contributions from new business segments.
Xiaomi’s smartphone business saw solid growth, with revenue reaching RMB50.6 billion, up 8.9 percent year-over-year, and a gross profit margin of 12.4 percent. The average selling price of smartphones rose 5.8 percent to RMB1,211, setting a new record. Xiaomi shipped 41.8 million smartphones globally, up 3.0 percent, marking the seventh consecutive quarter of growth.
Xiaomi maintained its top 3 global smartphone shipment ranking for the 19th consecutive quarter with a 14.1 percent market share, Canalys said. In China, Xiaomi’s smartphone share rose 4.7 percentage points to 18.8 percent, reclaiming the No. 1 position after 10 years.
The company continued its dual-brand strategy, with the Xiaomi brand launching the flagship Xiaomi 15S Pro, featuring the self-developed Xiaomi XRING O1 processor, wing-shaped loop liquid-cooling system Pro, and Leica Summilux triple-lens camera system. The Redmi brand introduced the Redmi Turbo 4 Pro Series, globally debuting the Snapdragon 8s Gen 4, featuring a 7,660mAh Xiaomi Surge battery with 90W fast charging and 22.5W reverse charging, and achieving record-high initial sales across all price ranges in 2025.
Xiaomi’s overall smartphone × AIoT segment revenue reached RMB92.7 billion, up 22.8 percent year-over-year, with a gross profit margin of 22.8 percent.
Smart EV, AI, and New Initiatives: Revenue reached RMB18.6 billion, reflecting Xiaomi’s successful entry into the electric vehicle space. The Xiaomi SU7 Series delivered 75,869 units in Q1, signaling strong initial demand.
Premiumization: Xiaomi’s premium smartphone strategy is bearing fruit. In China, premium smartphones (RMB4,000+) now account for 25 percent of total unit sales, with notable success in the RMB4,000–5,000 segment where Xiaomi holds a leading 24.4 percent market share.
Strategic Pillars: Building a Tech-Driven Ecosystem
Xiaomi’s strategy revolves around technological self-reliance, ecosystem expansion, and premiumization.
Technology Independence and R&D Investment
Xiaomi’s heavy R&D spend (RMB6.7 billion in Q1, up 30.1 percent YoY) and growing talent base (21,731 R&D staff, 47.7 percent of workforce) underpin its ambition to control key technologies. The launch of the Xiaomi XRING O1 processor, based on a cutting-edge 3nm process, is a major milestone, marking Xiaomi’s entrance into proprietary silicon for flagship devices. The XRING T1 for smartwatches further demonstrates its vertical integration strategy.
Premiumization Strategy
Xiaomi’s push into the premium segment — long dominated by Apple and Huawei — is showing results. The successful launch of the Xiaomi 15 Ultra, with 90 percent higher initial shipments compared to the Xiaomi 14 Ultra, reflects growing consumer trust and brand equity. The premium segment (RMB4,000+) now contributes significantly to revenue, with Xiaomi commanding a 9.6 percent market share in China.
Expansion in EVs and AIoT
Xiaomi’s entry into EVs is off to a strong start, with nearly 76,000 SU7 units delivered in Q1. The launch of the YU7 luxury SUV in May indicates an aggressive roadmap in the premium EV space. Meanwhile, Xiaomi’s AIoT ecosystem continues to expand, with connected device growth reinforcing cross-selling opportunities and user stickiness.
Retail Expansion
Xiaomi’s retail footprint is growing rapidly. In Q1, the company opened over 1,000 new offline stores in China, with plans to reach ~20,000 by year-end. Xiaomi is also targeting 10,000 new overseas Mi Home stores in the next five years, signaling a global ambition to replicate its China retail success.
Baburajan Kizhakedath
