Xiaomi Corporation, a smart electronics and consumer 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 on March 31, 2025 (“Q1 2025 Results”). Xiaomi recorded revenue above RMB100 billion for the second consecutive quarter, and its adjusted net profit exceeded RMB10 billion for the first time. The results surpassed market expectations, with quarterly revenue of RMB111.3 billion and a 47.4% increase year over year. Adjusted net profit reached RMB 10.7 billion, a 64.5% growth year over year, marking a strong start in 2025.
Solid growth was observed across all business segments during the quarter. Smartphone revenue increased by 8.9% year over year, to RMB 50.6 billion; lifestyle and IoT product revenue rose by 58.7% year over year, to RMB 32.3 billion, with record shipments of washing machines and refrigerators, while air conditioner shipments defied trends, rising over 65.0% year over year. Revenues from smart electric vehicles (“EVs”), artificial intelligence, and other new initiatives reached RMB 18.6 billion, with deliveries of 75,869 units of the Xiaomi SU7 series.
Xiaomi’s premiumization strategy gained ground across all categories. The average selling price (“ASP”) of smartphones reached RMB1,211 in the first quarter of 2025, a historic high. Sales of the Xiaomi 15 Ultra, launched in February, grew by 90% compared to its predecessor in the same period.
Xiaomi smartphones reclaim the top spot in mainland China after a decade, with an 18.8% market share
In the first quarter of 2025, Xiaomi’s smartphone revenue increased by 8.9% year-on-year to RMB 50.6 billion. Global smartphone shipments reached 41.8 million units, achieving year-on-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 by 4.7 percentage points year-on-year, to 18.8%, marking the fifth consecutive quarter of growth and regaining the top spot in shipments after ten years.
Xiaomi continued to strengthen its presence in the premium segment. 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 market share of 9.6%, an increase of 2.9 percentage points year-on-year.
Revenue and gross margin of IoT businesses reach record highs; smart large appliances double growth
The IoT and lifestyle product segment maintained accelerated growth, with revenue increasing by 58.7% year-on-year to RMB 32.3 billion in the 1st quarter of 2025. Gross margin improved by 5.4 percentage points year-on-year to 25.2%, both record highs. Despite the off-season for appliance sales, Xiaomi’s large smart home products grew explosively: air conditioner shipments exceeded 1.1 million units (+65.0% yoy); refrigerators exceeded 880,000 units (+65.0% yoy); and washing machines grew over 100% yoy to 740,000 units. Shipments of refrigerators and washing machines reached records. Xiaomi’s smart appliance factory will commence operations this year.
The tablet business also sustained strong growth. According to Canalys, global shipments grew by 56.1% year-on-year, reaching the third position globally for the first time and maintaining the third position in mainland China. Xiaomi’s smartband shipments were number 1 globally and number 2 in mainland China, while their TWS earphones were ranked as number 2 globally and number 1 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 rise of 20.1% year-on-year. Users with five or more connected devices (also excluding smartphones, tablets, and laptops) reached 19.3 million, up 26.5% year-on-year. In 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%).
The gross margin of internet services reaches 76.9%, as the user base continues to expand
Xiaomi’s internet services segment maintained stable growth, with revenue increasing by 12.8% compared to the previous year to RMB 9.1 billion in the 1st quarter of 2025. The gross margin increased by 2.7 percentage points compared to the previous year to 76.9%.
The global and mainland China internet services user base reached record highs. In March 2025, global MAUs reached 718.8 million (+9.2%) and mainland China MAUs reached 181.1 million (+12.9%).
Xiaomi’s smart electric vehicle business grows steadily and expands its capacity to achieve the goal of 350,000 deliveries by 2025
Revenues from smart electric vehicles, artificial intelligence, and other new initiatives totaled RMB 18.6 billion in the 1st quarter of 2025. 75,869 units of the SU7 series were delivered in the quarter. The group will continue to increase production to achieve its annual goal of 350,000 vehicles delivered.
Xiaomi expanded its sales and service network: as of March 31, 2025, it had 235 EV sales centers in 65 Chinese cities.
Last year, the SU7 series strengthened the brand’s premium positioning. The SU7 Ultra, launched in February, redefined the premium segment with prices starting from RMB 500,000. Soon, the 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 over 20,000 vehicles per month for six consecutive months. In April, the SU7 led sales 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 essential technologies and aims to position itself as a global leader in innovation. 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 chip Xiaomi XRING O1, which has already been integrated into smartphones and tablets. This milestone marks the full implementation of its core technologies: chip, artificial intelligence, and operating system. Xiaomi continues to build a solid long-term technological advantage and positions itself as a global leader in innovation and technology ecosystems.
