Xiaomi Corporation, a consumer electronics and smart manufacturing company with smartphones and smart hardware connected by 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 posted revenue above RMB100 billion for the second straight quarter, with adjusted net profit topping RMB10 billion for the first time. The results beat market expectations, with first-quarter revenue reaching RMB111.3 billion, a 47.4% year-over-year (“YoY”) increase. Adjusted net profit reached RMB10.7 billion, up 64.5% YoY, signaling a strong start to 2025.
Robust growth was seen across all business segments during the quarter. Smartphone revenue grew by 8.9% YoY to RMB50.6 billion; IoT and lifestyle products revenue surged 58.7% YoY to RMB32.3 billion, with washing machine and refrigerator shipments hitting record highs while air-conditioner shipments defied headwinds, up over 65.0% YoY. Revenue from smart Electric Vehicle (“EV”), AI, and other new initiatives reached RMB18.6 billion, with deliveries of Xiaomi SU7 Series vehicles totalling 75,869 units.
Xiaomi’s premiumization strategy gained traction across all categories. In which, the average selling price (“ASP”) of smartphones rose to RMB1,211 in Q1 2025, a record high. Sales of the Xiaomi 15 Ultra, launched in February, grew by 90% compared to its predecessor during the same period.
Xiaomi smartphones reclaim top spot in mainland China after a decade, capturing 18.8% market share
In Q1 2025, Xiaomi’s smartphone revenue increased by 8.9% YoY to RMB50.6 billion. Global smartphone shipments reached 41.8 million units, achieving YoY growth for seven consecutive quarters. According to Canalys (now part of Omdia), Xiaomi maintained Top 3 global smartphone shipments ranking for the nineteenth consecutive quarter, with a market share of 14.1% and achieved YoY growth for seven consecutive quarters in global smartphone shipments. Notably, Xiaomi’s smartphone market share in mainland China rose by 4.7 percentage points YoY to 18.8%, marking the fifth consecutive quarter of YoY growth in market share and reclaiming the No. 1 position in shipments after ten years.
Xiaomi continued to strengthen its presence in premium market segments. According to third-party data, in mainland China, Xiaomi’s smartphones priced at RMB3,000 and above units sold accounted for 25.0% of its total smartphone in mainland China, representing an increase of 3.3 percentage points YoY. For smartphones priced at RMB4,000 and above, Xiaomi’s smartphone units sold garnered a market share of 9.6%, up 2.9 percentage points YoY.
IoT business revenue and gross margin hit record highs; Smart large home appliance business doubles in growth
The Group’s IoT and lifestyle products segment sustained rapid growth, with revenue surging 58.7% YoY to RMB32.3 billion in Q1 2025. Gross margin improved by 5.4 percentage points YoY to 25.2%, setting new records for both revenue and gross margin. Despite the traditional off-season for home appliance sales, Xiaomi’s smart large home appliances experienced explosive growth. Air conditioner shipments exceeded 1.1 million units, up over 65.0% YoY; refrigerator shipments surpassed 880,000 units, growing over 65.0% YoY; and washing machine shipments soared over 100% YoY to 740,000 units. Both refrigerator and washing machine shipments reached record highs. Xiaomi’s smart home appliance factory is set to commence operations this year.
Xiaomi’s tablet business also maintained strong growth. According to Canalys, global tablet shipments grew by 56.1% YoY in Q1 2025, achieving a top-three ranking globally for the first time and maintaining its No. 3 position in mainland China. Xiaomi’s wearable bands shipments ranked No.1 globally and No.2 in mainland China, while its TWS earbuds shipments ranked No.2 globally and No.1 in mainland China.
As of March 31, 2025, the number of connected IoT devices (excluding smartphones, tablets and laptops) on Xiaomi’s AIoT platform increased to 943.7 million, up 20.1% YoY; the number of users with five or more devices connected to Xiaomi’s AIoT platform (excluding smartphones, tablets and laptops) reached 19.3 million, up 26.5% YoY. In March 2025, the monthly active users (“MAU”) of our Mi Home App grew to 106.4 million, up 19.5% YoY. The MAU of our AI Assistant grew to 146.7 million, up 17.5% YoY.
Internet services gross margin rises to 76.9% with user base continues to expand
Xiaomi’s internet services segment continued its steady growth, with revenue increasing by 12.8% YoY to RMB9.1 billion in Q1 2025. Gross margin rose by 2.7 percentage points YoY to 76.9%.
The user base for Xiaomi’s internet services expanded further, reaching record highs globally and in mainland China. In March 2025, global MAU reached 718.8 million, up 9.2% YoY, while MAU in mainland China reached 181.1 million, up 12.9% YoY.
Xiaomi’s smart EV business achieves steady growth and ramps up production capacity to meet full-year delivery target of 350,000 vehicles
Revenue from Xiaomi’s smart EV, AI, and other new initiatives sustained solid growth, with total revenue reaching RMB18.6 billion in Q1 2025. Deliveries of Xiaomi SU7 Series steadily progressed, with 75,869 vehicles delivered during the quarter. The Group will continue to ramp up production and strive to achieve its target of delivering 350,000 vehicles for the entire year of 2025.
Xiaomi continued to expand its sales and service network. As of March 31, 2025, Xiaomi had opened 235 smart EV sales centers across 65 cities in mainland China.
Over the past year, the Xiaomi SU7 Series has bolstered Xiaomi’s premium brand recognition. The Xiaomi SU7 Ultra, launched in February, has redefined the premium EV market, entering the ultra-premium segment with prices starting above RMB 500,000. The upcoming “high-performance luxury SUV” Xiaomi YU7, is poised to further expand Xiaomi’s presence in the premium EV sector. Xiaomi EV’s delivery capabilities have steadily enhanced, with cumulative deliveries exceeding 258,000 vehicles since its debut. Monthly deliveries have exceeded 20,000 vehicles for six consecutive months. In April, the Xiaomi SU7 topped sales for all models priced above RMB200,000.
Invest RMB200 billion in R&D over the next five years to establish a technology moat around “Chip, AI and OS” innovations
Xiaomi is firmly committed to investing in foundational core technologies and to become a global leader in the evolving realm of cutting-edge technologies. R&D expenses reached RMB6.7 billion in Q1 2025, up 30.1% YoY. As of March 31, 2025, Xiaomi’s R&D personnel hit a record high of 21,731. Xiaomi also extended its intellectual property capabilities, obtaining over 43,000 patents worldwide. The Group plans to invest RMB200 billion in R&D over the next five years, reinforcing its commitment to foundational core technology innovation.
On May 22, Xiaomi unveiled its self-developed Xiaomi XRING O1 3nm SoC, which has been applied to smartphones and tablets. This milestone marks the full deployment of Xiaomi’s core foundational technologies — “chip, AI and OS”. By establishing a long-term technology moat steadily, Xiaomi continues to set a global benchmark for cutting-edge innovation and a leading technology ecosystem.
SOURCE: Xiaomi Corporation
