Xiaomi Accelerates—Innovation, Expansion, and Market Leadership

The first quarter of 2025 marks a major leap for Xiaomi, solidifying its position as one of the most dynamic and innovative players in the global tech arena. With an aggressive premiumization strategy, significant investments in R&D, and expansion into AI, IoT, and smart electric vehicles (EVs), Xiaomi has posted record-breaking numbers in both revenue and profit. The Q1 report demonstrates not only impressive financial growth but also ongoing leadership in smartphones, smart devices, and EVs, sending a strong signal to competitors and investors: Xiaomi is shaping the future of global tech.

Quantitative Highlights: Record Revenue and Fast-Growing Profitability

Xiaomi closed Q1 2025 with total revenue of RMB 111.3 billion—a 47.4% surge compared to Q1 last year. Adjusted net profit reached RMB 10.7 billion, a remarkable 64.5% increase year-over-year. The overall gross profit margin was 22.8%, up 0.5 percentage points.
In the smartphones and AIoT (Artificial Intelligence of Things) segment, revenue was RMB 92.7 billion (+22.8% YoY) with a matching gross margin. The smart EV, AI, and new initiatives segment generated RMB 18.6 billion (+11.5% quarter-over-quarter)Xiaomi Corp_25Q1_ER_ENG….

Smartphones: Leadership in China and Consistent Global Growth

Xiaomi retained its position in the global Top 3 for smartphone shipments for the 19th consecutive quarter, with a 14.1% market share (up 0.3 points YoY) and sales of 41.8 million devices.
In its home market, China, Xiaomi claimed the No. 1 spot in shipments for the first time in a decade, with 40% YoY growth and an 18.8% market share. Growth was also strong across Southeast Asia, the Middle East, Europe, and Latin America, where Xiaomi ranked among the top three vendors.
The company’s premiumization strategy continues to pay off: In China, premium smartphones (retail price above RMB 4,000) accounted for 24.4% of Xiaomi’s domestic sales, and the Xiaomi 15 Ultra saw sales more than 90% higher than the previous generationXiaomi Corp_25Q1_ER_ENG….

AIoT and Smart Devices: Global Ecosystem Leadership

Xiaomi further strengthened its lead as a global AIoT platform, with 943.7 million connected devices—a 20.1% YoY increase. The Mi Home app reported 106.4 million monthly active users, while the number of users with five or more connected Xiaomi devices continues to grow.
Smart home appliances posted a record 113.8% YoY revenue increase, with refrigerator shipments up over 65%, air conditioner units up 65%+, and washing machine shipments more than doubling.
Xiaomi also topped the global wearables market, ranking No. 1 for wearable bands and in the global Top 3 for tablets, posting a 56.1% YoY increase in tablet shipmentsXiaomi Corp_25Q1_ER_ENG….

Smart EVs and Technology Innovation: Ambitious Bets Paying Off

Q1 2025 was a breakthrough for Xiaomi’s electric vehicle business, with 75,869 SU7 vehicles delivered—an 8.9% increase over the prior quarter. Xiaomi operated 235 EV sales centers in China (up 17.5% QoQ), reflecting robust demand for its flagship models.
The flagship Xiaomi YU7 luxury SUV impressed with 0–100 km/h acceleration in just 3.23 seconds, a base range of 835 km, and standard LiDAR across all variants. The model scored high marks in safety testing and featured an innovative multimedia cockpit.
R&D investment remained a strategic pillar, with RMB 24.1 billion spent in 2024 alone. Xiaomi expects to exceed RMB 200 billion in R&D investments by 2030. The company released the MiMo-7B, a large language AI model optimized for reasoning and coding, and unveiled its XRING O1 and T1 processors—key technology milestones for the yearXiaomi Corp_25Q1_ER_ENG….

ESG, Profitability, and Operational Discipline

For the seventh year, Xiaomi published its ESG report, meeting carbon reduction targets, achieving high rates of electronics recycling, and implementing green supply chain management.
Adjusted net profit hit a quarterly record at RMB 10.7 billion (+64.5% YoY), with the core business segments seeing continuous improvement in profitability and declining operating expense ratios. Even the EV and new initiatives division reduced its operating loss to RMB 0.5 billion, while growing revenues and scaling up deliveryXiaomi Corp_25Q1_ER_ENG….

Conclusion and Forward Outlook

Xiaomi’s Q1 2025 results showcase the power of its innovation engine and the success of its multi-pronged expansion strategy. With record-breaking revenue, surging profits, leadership in smartphones and smart devices, and rapid growth in electric vehicles, Xiaomi is positioned as a global technology powerhouse.
The company’s focus on premiumization, global reach, and relentless investment in R&D is driving superior results even as competition intensifies. The path forward will require ongoing agility to navigate market, regulatory, and innovation challenges. Still, the Q1 report clearly affirms Xiaomi’s role as one of the most influential forces in global technology.