Xiaomi Posts 30.5% Revenue Jump Driven by Smartphone Shipments Boost

Xiaomi reported a 30.5% growth in revenue for Q2 2025, reaching $16.16 billion, for the quarter ended June 30, due to high shipments of smartphones, Reuters reported. This strong performance was driven by robust smartphone sales and expanding electric vehicle operations.

Xiaomi President Lu Weibing has slightly lowered the company’s smartphone shipment target to 175 million units, down from the 180 million goal set in the first quarter. He said, “We expect the overall smartphone market to see little to no growth this year. If there is any increase, it might be around 0.1% to 0.2%. That’s somewhat different from the growth we had anticipated at the beginning of the year.”

Smartphone Business Drives Growth

Xiaomi’s smartphone sales boost in the Q2 came from strong global shipments across multiple markets. Xiaomi shipped 42.4 million smartphones globally during the quarter, marking an increase of 0.6% YoY. However, smartphone revenue fell 2.1% to about $6.25 billion due to a lower average selling price.

According to Canalys data, Xiaomi maintained its position among the top three global smartphone vendors for the 20th consecutive quarter. The company’s smartphone revenue for Q2 2025 reached significant levels, contributing substantially to the overall revenue growth.

Regional Market Leadership

Xiaomi has strengthened its position as the Southeast Asian smartphone leader, capturing significant market share across the region. The company has also made impressive gains in other international markets, with particularly strong performance in Europe and India.

In China, Xiaomi regained the top position in the domestic smartphone market during Q1 2025, shipping 13.3 million units with a 40% YoY increase. This momentum continued into the second quarter, helping drive overall revenue growth.

Electric Vehicle Success

A major contributor to Xiaomi’s revenue growth was its expanding electric vehicle business. Xiaomi’s EV revenue in Q2 2025, due to YU7’s performance, showed remarkable growth. The EV division generated $2.83 billion in revenue during the quarter, from $2.48 billion in the previous quarter.

Xiaomi’s second electric vehicle model, the YU7 SUV, was launched in late June 2025. While deliveries only began in July, strong pre-orders for the vehicle contributed to the quarter’s impressive results. The YU7 represents Xiaomi’s expansion beyond its initial SU7 sedan model.

The gross margin for Xiaomi’s innovative businesses, including EV and AI, reached 26.4% in the second quarter, improving from 23.2% in the first quarter. This shows the company’s ability to generate profitable growth in its new business segments.

Stock Market Performance

The strong quarterly results have positively impacted investor confidence. Xiaomi’s stock performance in 2025 has been exceptional, with Hong Kong-listed shares rising 52% year-to-date. This impressive stock performance reflects investor optimism about Xiaomi’s diversification strategy and growth prospects.

The company’s new initiatives, including electric vehicles and artificial intelligence, also narrowed losses from the first quarter. This improvement in profitability for newer business segments signals the successful execution of Xiaomi’s expansion strategy.

The results also highlight Xiaomi’s successful execution of its ecosystem strategy, leveraging its smartphone user base to drive adoption of new products and services across multiple technology sectors.