Xiaomi Corporation, a consumer electronics and smart manufacturing company with smartphones and smart hardware connected through an Internet of Things (“IoT”) platform at its core, announced its unaudited consolidated results for the three months ended March 31, 2025 (“Q1 2025 Results”). Xiaomi reported revenue exceeding RMB100 billion for the second consecutive quarter, and its adjusted net profit exceeded RMB10 billion for the first time. The results exceeded market expectations, with quarterly revenue of RMB111.3 billion, a 47.4% year-over-year increase. Adjusted net profit reached RMB10.7 billion, a 64.5% year-over-year increase, marking a strong start to 2025.
Solid growth was seen across all business segments during the quarter. Smartphone revenue increased 8.9% year-over-year to RMB 50.6 billion; lifestyle and IoT revenue surged 58.7% year-over-year to RMB 32.3 billion, with record shipments of washing machines and refrigerators, while air conditioner shipments defied trends, increasing over 65.0% year-over-year. Revenue from smart electric vehicles (“EVs”), artificial intelligence, and other new initiatives reached RMB 18.6 billion, with shipments of 75,869 units of the Xiaomi SU7 series.
The strategy of premiumization Xiaomi’s smartphone market gained ground across all categories. The average selling price (ASP) of smartphones reached RMB 1,211 in the first quarter of 2025, a historic high. Sales of the Xiaomi 15 Ultra, launched in February, grew 90% compared to its predecessor in the same period.
Xiaomi smartphones regain top spot in mainland China after a decade with 18.8% market share
In the first quarter of 2025, Xiaomi’s smartphone revenue increased 8.9% year-over-year to RMB 50.6 billion. Global smartphone shipments reached 41.8 million units, achieving year-over-year growth for seven consecutive quarters. According to Canalys (now part of Omdia), Xiaomi maintained its position among the top three global manufacturers for the 19th consecutive quarter, with a global market share of 14.1%. In mainland China, market share increased 4.7 percentage points year-over-year to 18.8%, marking the fifth consecutive quarter of growth and reclaiming the top spot in shipments after a ten-year stint.
Xiaomi continued to strengthen its presence in the segment premium. According to third-party data, in mainland China, smartphones priced above RMB 3,000 accounted for 25.0% of Xiaomi’s total sales, an increase of 3.3 percentage points year-on-year. For smartphones priced at RMB 4,000 and above, Xiaomi achieved a 9.6% market share, an increase of 2.9 percentage points year-on-year.
IoT business revenue and gross margin hit records; large smart appliances double growth
The IoT and lifestyle products segment maintained rapid growth, with revenue increasing 58.7% year-over-year to RMB 32.3 billion in Q1 2025. Gross margin improved 5.4 percentage points year-over-year to 25.2%, both records. Despite the slow sales season for home appliances, Xiaomi’s large-scale smart home products experienced explosive growth: air conditioner shipments exceeded 1.1 million units (+65.0% year-over-year); refrigerators exceeded 880,000 units (+65.0% year-over-year); and washing machines grew over 100% year-over-year to 740,000 units. Shipments of refrigerators and washing machines reached record highs. Xiaomi’s smart home factory will begin operations this year.
The tablet business also maintained strong growth. According to Canalys, global shipments grew 56.1% year-over-year, reaching third place globally for the first time and maintaining its third position in mainland China. Xiaomi’s smartband shipments ranked number one globally and number two in mainland China, while its TWS earbuds ranked number two globally and number one in China.
As of March 31, 2025, the number of devices connected to Xiaomi’s AIoT platform (excluding smartphones, tablets, and laptops) increased to 943.7 million, a 20.1% increase year-on-year. Users with five or more connected devices (also excluding smartphones, tablets, and laptops) reached 19.3 million, a 26.5% increase year-on-year. As of March 2025, monthly active users (“MAU”) of the Mi Home app grew to 106.4 million (+19.5%), and those of the AI Assistant to 146.7 million (+17.5%).
Internet services gross margin reaches 76.9% as user base continues to expand
Xiaomi’s internet services segment maintained stable growth, with revenue increasing 12.8% year-on-year to RMB 9.1 billion in Q1 2025. Gross margin increased 2.7 percentage points year-on-year to 76.9%.
The internet service user base reached record highs globally and in mainland China. By March 2025, global MAUs reached 718.8 million (+9.2%), and MAUs in mainland China reached 181.1 million (+12.9%).
Xiaomi’s smart electric vehicle business is growing steadily and expanding its capacity to reach its target of 350,000 deliveries by 2025.
Revenue from smart electric vehicles, artificial intelligence, and other new initiatives totaled RMB18.6 billion in Q1 2025. A total of 75,869 SU7 series vehicles were delivered in the quarter. The group will continue to increase production to achieve its annual target of 350,000 vehicle deliveries.
Xiaomi has expanded its sales and service network: as of March 31, 2025, it had 235 EV sales centers in 65 Chinese cities.
Over the past year, the SU7 series has strengthened the brand’s premium positioning. The SU7 Ultra, launched in February, redefined the premium segment with prices starting at RMB 500,000. The upcoming launch of the Xiaomi YU7 luxury performance SUV will further strengthen its presence in this segment. EV delivery capacity has been steadily improving, with cumulative deliveries exceeding 258,000 units since its launch. Xiaomi has delivered more than 20,000 vehicles per month for six consecutive months. In April, the SU7 topped the sales charts among models priced above RMB 200,000.
Xiaomi will invest RMB 200 billion in R&D over the next five years to strengthen its ecosystem in chips, AI and operating system.
Xiaomi remains firmly committed to investing in core technologies and strives to position itself as a global innovation leader. R&D spending reached RMB 6.7 billion in the first quarter of 2025 (+30.1%). As of March 31, the company had 21,731 employees working in R&D, its highest number to date. Xiaomi has also strengthened its intellectual property capabilities, accumulating over 43,000 patents worldwide. The group plans to invest RMB 200 billion in R&D over the next five years, reaffirming its commitment to fundamental technological innovation.
On May 22, Xiaomi unveiled its proprietary 3nm Xiaomi XRING O1 chip, which has already been incorporated into smartphones and tablets. This milestone marks the full deployment of its key technologies: chip, artificial intelligence and operating system. Xiaomi continues to build a strong long-term technological advantage and positions itself as a global leader in innovation and technology ecosystems.
