Xiaomi Corporation has kicked off 2025 with a financial performance that turned quite a few heads. For the quarter ending March 31, the company posted revenue of INR 1,31,890 crore. That marks the second quarter in a row where revenue topped INR 1,20,000 crore. Even more impressive? This figure reflects a 47.4% year-over-year (YoY) jump, outpacing market forecasts. Adjusted net profit also hit a record INR 12,680 crore, a 64.5% YoY increase. All signs, at least for now, point to a very strong start.
Robust Growth Across Key Segments
Growth wasn’t isolated to a single product line. Xiaomi saw upward momentum across the board in Q1 2025.
Smartphones: Revenue from smartphones climbed 8.9% YoY, reaching INR 59,961 crore. Global smartphone shipments totaled 4.18 crore units, continuing a streak of seven consecutive quarters with YoY gains. The company held its position in the global top three for the nineteenth straight quarter, securing a 14.1% market share. Perhaps even more significant: in mainland China, Xiaomi’s smartphone market share rose by 4.7 percentage points YoY to 18.8%, reclaiming the top spot in shipments—a position it hadn’t seen in over ten years. The average selling price (ASP) also reached a new high at INR 14,372. Sales of the newly launched Xiaomi 15 Ultra surged 90% compared to its predecessor during the same timeframe.
IoT and Lifestyle Products: This segment really took off, with revenue jumping 58.7% YoY to INR 38,276 crore. Gross margins also improved significantly, up 5.4 percentage points YoY to 25.2% — a double record for both revenue and margin. Smart home appliances, typically slower in Q1, still posted robust numbers. Air conditioner shipments rose over 65.0% YoY to more than 11 lakh units. Refrigerators and washing machines weren’t far behind, each growing over 65.0% and 100% YoY respectively, with 8.8 lakh and 7.4 lakh units shipped. Notably, both product categories reached all-time shipment highs. Xiaomi’s own smart home appliance factory is also set to begin operations this year.
Smart Electric Vehicles (EVs), AI, and Other Initiatives: Xiaomi reported INR 22,041 crore in revenue from these newer ventures. The company delivered 75,869 units of its SU7 Series during the quarter and targets 350,000 units for the full year. As of March 31, Xiaomi had opened 235 smart EV sales centers across 65 cities in China. Their premium SU7 Ultra, launched in February, now competes in the ultra-luxury EV segment with prices starting above INR 59.25 lakh. Cumulative EV deliveries have now topped 2.58 lakh units, with monthly deliveries exceeding 20,000 units for six consecutive months. April even saw the SU7 become the top-selling model in China for vehicles priced above INR 23.7 lakh.
Expanding Ecosystem and Growing User Base
Beyond hardware, Xiaomi’s broader ecosystem has also seen notable growth. As of March 31, the number of connected IoT devices on its AIoT platform (excluding phones, tablets, and laptops) reached 94.4 crore — up 20.1% YoY. Users with five or more devices connected rose to 1.93 crore, a 26.5% YoY increase. The Mi Home App saw monthly active users (MAUs) climb 19.5% YoY to 10.64 crore. Meanwhile, Xiaomi’s AI Assistant hit 14.67 crore MAUs, up 17.5% YoY.
Internet services also contributed meaningfully, with Q1 2025 revenue up 12.8% YoY to INR 10,783.5 crore. Gross margin in this segment rose by 2.7 percentage points to an impressive 76.9%. Global MAU for internet services grew to 71.88 crore, a 9.2% YoY rise, with mainland China contributing 18.11 crore users—a 12.9% increase.
Xiaomi’s tablet shipments grew 56.1% YoY globally, helping the brand secure a top-three spot worldwide for the first time. In China, they held onto the No. 3 position. The wearable segment also performed well: Xiaomi ranked No. 1 globally for wearable bands and No. 2 in China. For TWS earbuds, they ranked No. 2 globally and took the top spot in China.
Deepening Commitment to R&D
Perhaps one of the more quietly transformative stories is Xiaomi’s continued bet on innovation. R&D expenses rose 30.1% YoY to INR 7,940 crore, with R&D personnel reaching an all-time high of 21,731. The company now holds over 43,000 patents globally. Xiaomi has also earmarked INR 237,000 crore for R&D investment over the next five years.
In a notable highlight, Xiaomi introduced its self-developed Xiaomi XRING O1 3nm SoC on May 22. This chip has already been deployed in both smartphones and tablets. It’s a major step in the company’s vision to fully own its tech stack—chip, AI, and OS. Xiaomi is clearly aiming to build a defensible technology moat and perhaps even redefine what “cutting-edge” means globally.
Still, with this kind of meteoric rise, one can’t help but wonder—can Xiaomi sustain it all? Or is this just the calm before some storm?
