PhoneSentral Tech in Simplicity
Xiaomi Corporation’s financial results for Q2 2025 were nothing short of exceptional, with the company achieving another record-breaking quarter.
Total revenue soared to RMB116.0 billion, marking a substantial 30.5% increase year-over-year and exceeding the RMB100 billion threshold for the third consecutive quarter.
This impressive top-line growth was accompanied by a significant surge in profitability, with adjusted net profit rising by a remarkable 75.4% year-over-year to RMB10.8 billion.
These figures underscore Xiaomi’s successful transition from a hardware-focused business to a diversified technology giant with multiple high-growth engines.
The company’s strong performance was driven by its diverse portfolio of businesses, each contributing to the overall revenue increase.
The smartphone and AIoT segment remained a cornerstone, generating RMB94.7 billion in revenue, a 14.8% increase year-over-year.
This was propelled by consistent global smartphone shipments, which maintained a top-three ranking for the 20th consecutive quarter.
However, the most explosive growth came from the new smart EV, AI, and other innovative initiatives segment, which saw revenue skyrocket by 233.9% year-over-year to RMB21.3 billion, with EV revenue alone topping RMB20 billion for the first time.
The IoT and lifestyle products business also saw a record-high revenue of RMB38.7 billion, demonstrating the strength of Xiaomi’s connected ecosystem.
Xiaomi’s strategic initiatives were instrumental in achieving these results. The company’s “Human x Car x Home” ecosystem strategy is central to its success, creating a seamlessly integrated experience that drives user engagement and product adoption.
A key component of this strategy is premiumization, a targeted effort to increase market share in higher-priced product segments.
This is evident in the smartphone business, where premium models are gaining traction, and especially in the EV segment, with the successful launch and scale-up of its SU7 and YU7 series.
Furthermore, Xiaomi’s record-high R&D investment of RMB7.8 billion in the quarter, a 41.2% increase year-over-year, fuels its innovation pipeline in core technologies like chips and artificial intelligence, positioning the company for sustained long-term growth.
