Xiaomi Hits Record Highs as Revenue Surges 47 Percent in Q1

Xiaomi just reported its first-quarter results for 2025—and it’s a blowout. The company posted revenue of RMB 111.29 billion, up 47.4% year over year, beating market expectations. Even more impressive, adjusted net profit jumped 64.5% to RMB 10.68 billion, also setting a new record.

That’s not just a bounce back—it’s a full-speed sprint.

So what’s driving the numbers? And more importantly, where might the stock go next?

Smartphones are steady but premium strategy pays off

Smartphones remain Xiaomi’s core business. In Q1, this segment brought in RMB 50.6 billion, up 8.9%, with global shipments hitting 41.8 million units. It’s not explosive growth, but it’s remarkably consistent—especially in a tough global market.

What’s really worth noting is ASP (Average Selling Price) hitting a record RMB 1,211, up 5.8% year over year. This means Xiaomi is gradually moving up the value chain, selling more high-end phones and boosting profitability.

In China, the comeback is even more dramatic. Xiaomi’s smartphone market share climbed to 18.8%, pushing it back to the top spot in domestic shipments for the first time in a decade.

Two new models were key here:

• Xiaomi 15S Pro, powered by the company’s first in-house chip Xuanjie O1 and Leica triple cameras.

• Redmi Turbo 4 Pro, aimed at the value-for-money segment, launched with Qualcomm’s new Snapdragon 8s Gen 4 and Xiaomi’s custom high-density battery tech.

Together, they’re proving Xiaomi’s two-brand strategy—premium Xiaomi and budget Redmi—is hitting the mark.

Smart home and lifestyle products deliver surprise boost

While smartphones often get the spotlight, it’s Xiaomi’s IoT and lifestyle products that really popped in Q1. Revenue in this segment surged 58.7% to RMB 32.3 billion, with a robust gross margin of 25.2%.

This includes everything from air conditioners and washing machines to wearables and tablets—and Xiaomi is winning across the board.

Some standout stats:

• Smart appliance shipments: ACs (1.1 million units), fridges (880K), washers (740K)—all grew over 65% year over year.

• Wearables: Xiaomi ranked #1 globally in smart bands and #2 in wireless earbuds.

• Tablets: Global shipments soared 56.1%, with Xiaomi breaking into the top three worldwide.

Behind these numbers is a growing AIoT (AI + IoT) platform. As of March, Xiaomi had connected over 944 million smart devices (excluding phones, tablets, PCs). The number of users with five or more devices connected rose to 19.3 million, up 26.5%.

In plain terms: Xiaomi is quietly building the world’s most scalable smart home ecosystem.

Internet services keep delivering high-margin growth

Xiaomi’s internet services—things like mobile ads, app revenue, and content—brought in RMB 9.1 billion this quarter, up 12.8% with a sky-high 76.9% gross margin.

With 719 million monthly active users globally, Xiaomi is monetizing its user base more efficiently. In mainland China alone, internet service revenue hit a record RMB 6.4 billion, up 14.8%.

Advertising remains the main driver, contributing RMB 6.6 billion, while games brought in RMB 1.2 billion.

This part of the business may not grab headlines, but it’s incredibly profitable—and gives Xiaomi an edge in financial flexibility.

Electric vehicles go from hype to delivery

The biggest wildcard in Xiaomi’s story this year is its electric vehicle (EV) business—and Q1 results suggest it’s off to a fast start.

Revenue from the EV and AI division came in at RMB 18.6 billion, with EVs alone contributing RMB 18.1 billion. Xiaomi delivered 75,869 units of its first car, the Xiaomi SU7, and is already expanding production.

Even with an operating loss of RMB 500 million, the EV business appears much more real—and much more promising—than skeptics expected.

In May, Xiaomi unveiled the YU7, a luxury SUV to complement the SU7 sedan. The company now has 235 sales stores across 65 cities and is building out a driver training program for customers—showing that it’s playing the long game in automotive.

If it can scale this business while keeping its tech edge, Xiaomi could become one of the few consumer electronics brands to successfully enter the car market.

Stock outlook after the rally

Following the strong Q1 results, Xiaomi’s Hong Kong-listed shares (1810.HK) rose to HKD 51.55, nearing their all-time high. The ADR in the US (XIACY) also climbed to USD 34.19.

Valuation-wise, Xiaomi is now trading at a forward P/E of around 20x, which may not look cheap on the surface—but if the company can sustain high double-digit profit growth and prove its EV business can turn profitable, there’s still room to run.

That said, a lot of good news is priced in. For the stock to push much higher from here, investors will need confidence in:

• Continued smartphone ASP and margin growth

• Further monetization of its massive internet user base

• Successful scaling and cost control in EV production

In short: Xiaomi’s Q1 proves it’s more than just a phone maker. It’s becoming a full-stack consumer tech company with a real shot at reshaping the smart hardware and electric car space.

Whether the stock breaks out from here depends on how fast it can turn that vision into sustainable cash flow.

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