Xiaomi has posted record-breaking Q1 2025 earnings, with revenue surging 47.4% year-on-year to CN¥111.3 billion (A$23.953 billion).
The company’s adjusted net profit hit ¥10.7 billion, marking a 64.5% increase — its highest ever.
Gross margin also climbed to 22.8%, reflecting Xiaomi’s successful push into premium markets and diversified revenue streams.
The results underscore the company’s resilience amid global economic uncertainty and intensifying competition.

Smartphone sales remained Xiaomi’s backbone, generating ¥50.6 billion, up 8.9% year-on-year.
However, the real standout was its IoT division, which saw revenue skyrocket 59% to ¥32.3 billion.
Internet services also delivered strong growth, with revenue reaching ¥9.1 billion, boasting a 76.9% gross margin.
Xiaomi’s market share in Mainland China’s high-end smartphone segment climbed from 21% to 25%, reinforcing its premiumisation strategy.
Looking ahead, Xiaomi is doubling down on AI, chip development, and electric vehicles, with ¥30 billion earmarked for R&D in 2025.
The company plans to deliver 76,000 EVs in Q1, signaling its ambition to challenge Tesla and BYD.
Management remains bullish about long-term growth, despite rising competition in the IoT and smartphone markets.
Xiaomi is making a bold push towards tech independence, announcing a US$6.9 billion investment in semiconductor development over the next decade.
The Chinese electronics giant is reviving its ambition to build in-house chips, starting with the Xring O1, a cutting-edge 3-nanometer system-on-chip (SoC) set to debut this month.
The move comes amid escalating United States-China tech tensions, with Washington tightening restrictions on semiconductor exports to Chinese firms.
Xiaomi’s strategy mirrors efforts by Huawei and Alibaba to secure domestic chip supply and reduce its reliance on foreign manufacturers.
CEO Lei Jun framed the initiative as a national priority, emphasising technological sovereignty.
Xiaomi has poured $1.9 billion into chip-related R&D since 2021, assembling a 2,500-strong engineering team. The Xring O1, built on ARM architecture and fabricated by TSMC, is expected to rival Qualcomm’s Snapdragon chips.
However, Xiaomi is not severing ties with Qualcomm just yet - its Snapdragon processors will continue to power its flagship devices for the foreseeable future. Analysts see this as a dual-track approach, balancing short-term stability with long-term autonomy.
Beyond chips, Xiaomi is expanding its product lineup with the Xiaomi 15S Pro smartphone, Pad 7 Ultra tablet, and YU7 electric SUV. These products are set to launch this week.
The YU7, Xiaomi’s first all-electric SUV, boasts a 681-horsepower drivetrain and an 835-kilometre range, positioning it as a direct competitor to Tesla’s Model Y.
Meanwhile, the Xiaomi 15S Pro will feature 12GB of RAM as standard, reinforcing the company’s push to premium devices.
These launches underscore Xiaomi’s ambition to diversify beyond smartphones, tapping into lucrative EV and AI-driven tech markets.
Xiaomi’s timing is strategic, coinciding with its 15th anniversary celebrations.
The company is betting big on AI, imaging technology, and smart living, leveraging its partnership with Leica to enhance mobile optics.
Investors will be watching closely as Xiaomi navigates geopolitical headwinds and competitive pressures.
With billions on the line, the success of its chip venture could redefine China’s tech landscape — and Xiaomi’s place within it.
At the time of writing, the Xiaomi Corp (HKG: 1810) stock price was HK$51.55 (A$10.19), with a market cap of around HK$1.34 trillion (A$265 billion).
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