Xiaomi has reported a remarkable start to the year, posting its highest-ever revenue and profit for the first quarter of 2025. The company recorded a total revenue of $15.4 billion, a 47.4% year-on-year (YoY) increase, while net profit surged by 64.5% YoY, reaching $1.48 billion. The strong performance was driven by Xiaomi’s robust smartphone sales, expansion in the electric vehicle (EV) market, and continued dominance in the AIoT and wearables space.
Smartphones and AIoT Drive Core Revenue
Xiaomi’s smartphone and AIoT divisions continued to serve as the company’s main revenue engines. Together, they contributed $12.8 billion, showing a 22.8% YoY growth. The company maintained its position as one of the top three global smartphone vendors for the 19th consecutive quarter.
In Mainland China, Xiaomi climbed to the No. 1 position in total smartphone shipments, capturing an 18.8% market share, an increase of 4.7 percentage points from the same period last year. Globally, Xiaomi shipped 41.8 million smartphones, with Mainland China contributing 13.3 million units, marking a significant 40% YoY increase.
The AIoT and lifestyle product segment also delivered impressive results. Xiaomi now has 943.7 million connected AIoT devices in its ecosystem. Revenue from smart large home appliances saw an impressive 113.8% YoY growth, while Xiaomi continued to lead the global wearable tech space, ranking No. 1 in wearables and No. 2 in TWS earbuds.
EV Division Off to a Strong Start
Xiaomi’s entry into the EV market is beginning to show promise. The company’s smart electric vehicle division posted $2.5 billion in revenue for the quarter, with a 23.2% gross margin. Although the segment posted an operating loss of $69.4 million, the loss is seen as a strategic investment as the company scales production and infrastructure.
The star performer in this division is the Xiaomi SU7 sedan, with 75,869 units delivered in Q1 2025. Since its launch, the SU7 has reached a total of over 258,000 deliveries. Xiaomi also expanded its EV retail network to 235 locations across China, reflecting a 17.5% increase from the previous quarter.
Rapid Growth in Global User Base
Xiaomi’s user ecosystem continues to expand globally. The company reported a 9.2% YoY increase in global monthly active users (MAUs), which now stand at 718.8 million. In Mainland China, MAUs grew by 12.9%, reaching 181.1 million.
For the first time, Xiaomi entered the top-three rankings in global tablet shipments, delivering 3.1 million units in Q1. The recent launch of the Xiaomi Pad 7 Ultra in May 2025 further strengthens its position in the premium device segment. Xiaomi now holds 25% of China’s flagship smartphone market, highlighting growing brand strength in the high-end segment.
Investing Heavily in R&D and Innovation
Xiaomi’s aggressive push in innovation is evident in its Q1 R&D spending, which crossed $1.87 billion. A major achievement this quarter was the launch of the Xring O1, Xiaomi’s first in-house chipset, which powers both the Xiaomi 15S Pro and the Pad 7 Ultra.
The company’s R&D strength continues to grow, with 47.7% of its workforce engaged in research and development. Xiaomi now owns more than 43,000 patents globally, a testament to its commitment to long-term innovation and technological independence.
Outlook for the Future
With a record-breaking first quarter behind it, Xiaomi is positioned for an even stronger 2025. The company’s diversified business strategy—spanning smartphones, smart devices, EVs, and proprietary chip development—has enabled it to tap into multiple high-growth sectors simultaneously.
As Xiaomi continues to invest in innovation, expand its user base, and scale its EV ambitions, it is rapidly evolving from a smartphone brand into a global technology leader. The momentum from Q1 sets a high bar for the remainder of the year, and industry watchers will be keenly following Xiaomi’s next moves.
