Xiaomi Corp. has reported a 30.5% year-on-year rise in revenue for the second quarter of 2025, driven mainly by robust smartphone shipments in Southeast Asia. The Chinese tech giant, which also has a growing electric vehicle (EV) division, continues to expand its global footprint despite a sluggish overall smartphone market.
Xiaomi Q2 2025 Financial Results
For the quarter ending June 30, 2025, Xiaomi posted:
- Revenue: 116 billion yuan ($16.16 billion), exceeding analysts’ estimates of 114.7 billion yuan.
- Adjusted Net Profit: 10.8 billion yuan, up 75.4% year-on-year, beating the 10.1 billion yuan forecast.
This performance highlights Xiaomi’s resilience in a global smartphone market that is expected to show little to no growth this year.
Smartphone Business Performance
Xiaomi remains the world’s third-largest smartphone maker with a global market share of 14.7%, according to Canalys. Key highlights include:
- Global smartphone shipments: 42.4 million units in Q2 2025, up 0.6% from last year.
- Smartphone revenue: 45.5 billion yuan, down 2.1% due to a lower average selling price.
- Regional leadership:
- #1 in Southeast Asia by shipments.
- #2 in Europe by shipments.
- #3 globally, behind Samsung and Apple.
However, Xiaomi President Lu Weibing revised the company’s full-year shipment target to 175 million units, down from the 180 million units projected earlier in the year.
“We expect the overall smartphone market to see little to no growth this year. Any increase might only be around 0.1% to 0.2%,” Lu said.
Xiaomi EV Business Performance
Xiaomi’s electric vehicle (EV) division continues to show growth, contributing significantly to its revenue mix:
- EV revenue: 20.6 billion yuan in Q2, up from 18.1 billion yuan in Q1.
- Deliveries: 81,302 EVs in Q2, including the flagship SU7 and the newly launched YU7 model (deliveries began in July).
- Cumulative EV sales: 300,000 units since launching the business in March 2024.
- Net loss: 0.3 billion yuan from EV and AI initiatives, narrowed from 0.5 billion yuan in Q1.
Despite over 30 billion yuan invested in R&D, Xiaomi says it is confident that its EV business will achieve profitability on a monthly or quarterly basis in the second half of 2025.
Outlook
Xiaomi’s strong Q2 performance highlights its diversified growth strategy, with smartphones continuing to drive revenue and EVs emerging as a significant long-term business pillar. While global smartphone demand remains flat, regional dominance in Southeast Asia and Europe, combined with aggressive EV expansion, positions Xiaomi for steady growth in the coming quarters.
