Xiaomi posts record profit in first quarter of 2025
Xiaomi saw both revenue and profit rise to a record high in the first quarter of 2025. This impressive growth was driven by a strategic shift to high-end smartphones and tablets, as well as the successful launch of electric vehicles (EVs) in late March 2024.
During an earnings call, Xiaomi chairman Lu Weibing attributed the company’s continued success to its focus on the high-end smartphone market. This strategy resulted in five consecutive quarters of production growth, with a remarkable 5.8% increase in the global average selling price for smartphones, to a record 1,211 Chinese Yuan (about €148). Xiaomi also saw its share of high-end smartphone sales in mainland China increase significantly, from 21% in the same period of 2024 to 25%.
Smartphone revenues rose 8.9% to 50.6 billion Chinese yuan in the first quarter, while global shipments increased 3% to 41.8 million units, representing seven consecutive quarters of year-on-year growth. The company’s Internet services segment saw a 12.8% improvement and generated 9.1 billion Chinese yuan in revenue. IoT revenue also grew significantly, up 58.7% to 32.3 billion Chinese yuan. EV sales contributed significantly with 18.1 billion Chinese yuan.
Adjusted net profit rose an impressive 64.5% year-on-year to 10.7 billion Chinese yuan. Total revenue rose 47.4% to 111.3 billion Chinese yuan. Xiaomi’s commitment to innovation was evident in research and development spending in the first quarter, which rose 30.1% to 6.7 billion Chinese yuan.
Looking ahead, Lei Jun, co-founder of Xiaomi, announced ambitious plans for the next five years, targeting a total R&D investment of 200 billion Chinese yuan. A significant portion of this investment, 50 billion Chinese yuan, will be allocated to the company’s chip unit, underscoring Xiaomi’s commitment to technological advancement.
Business AM
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