Last Updated -
October 26, 2026
Explore the business model, global strategy, and market performance including insights into its position in China.
Xiaomi Corporation is a Chinese consumer electronics and smart manufacturing company founded in 2010 and headquartered in Beijing, China. The company is listed in Hong Kong and was founded by Lei Jun, who serves as chairman and CEO. Its core business spans smartphones, tablets, wearables, smart TVs, home appliances, connected devices, internet services, artificial intelligence initiatives, and smart electric vehicles. Xiaomi describes its strategic focus as a connected “Human × Car × Home” ecosystem, linking personal devices, smart-home products, and vehicles through software, AI, and its HyperOS platform.
Xiaomi began as a smartphone company and has developed into one of the world’s largest consumer technology platforms. Its business model combines hardware sales with higher-margin internet services such as advertising, app distribution, content, and services tied to connected-device usage. The company has also moved into smart EVs, with the Xiaomi SU7 Series becoming a material contributor to revenue in 2026. Xiaomi has historically emphasized value-for-money hardware and states a commitment to offering products at “honest prices.”
In Q2 2026, Xiaomi reported revenue of RMB108.9 billion, with Smartphone × AIoT contributing RMB84.0 billion and Smart EV, AI, and other new initiatives contributing RMB24.9 billion. Smartphone shipments were 31.2 million units in the quarter, while smart EV deliveries reached 104,199 vehicles. As of June 30, 2026, Xiaomi had 1.16 billion connected IoT devices excluding smartphones and tablets, and global monthly active users across smartphones and tablets reached 766.5 million in June 2026. The company ranked No. 3 globally in smartphone shipments in Q2 2026 and remained a major player in tablets, wearables, earbuds, smart-home devices, and China’s premium electric sedan market.
Xiaomi makes money through a connected hardware, services and mobility model built around its “Human × Car × Home” strategy. The company sells smartphones, tablets, wearables, smart TVs, home appliances, other IoT lifestyle products and smart electric vehicles, then monetizes its installed base through internet services such as advertising, app distribution, content and connected-device usage.
In Q2 2026, Xiaomi generated revenue of RMB108.9 billion. The Smartphone × AIoT segment remained the core business at RMB84.0 billion, or 77.1% of total revenue. Smart EV, AI and other new initiatives contributed RMB24.9 billion, or 22.9% of total revenue, showing that vehicles have become a material second growth pillar.
Xiaomi’s main competitive advantage is ecosystem scale. As of June 30, 2026, it had 1.16 billion connected IoT devices excluding smartphones and tablets, 766.5 million global monthly active users including smartphones and tablets, and 24.6 million users with five or more connected AIoT devices. This gives Xiaomi a broad base for cross-selling devices, increasing user retention and expanding higher-margin services.
The company also benefits from a value-for-money hardware position. Xiaomi has historically emphasized “honest prices,” which helps it compete across emerging markets and price-sensitive developed markets. Its challenge is that this model leaves hardware margins exposed to component costs, promotional activity and aggressive Android competition.
Xiaomi holds a strong global smartphone position. In Q2 2026, it ranked No. 3 globally in smartphone shipments and maintained a top-three global ranking for the 24th consecutive quarter. It ranked No. 2 in Southeast Asia, Latin America and the Middle East, and No. 3 in Europe and Africa. Its smartphones ranked among the top three in 53 countries and regions.
Beyond smartphones, Xiaomi is a major AIoT platform operator. In Q2 2026, it ranked No. 4 globally in tablet shipments, No. 2 globally in TWS earbud shipments and No. 2 globally in wearable-band shipments. In electric vehicles, the Xiaomi SU7 Series ranked No. 1 by sales volume among pure electric sedans priced above RMB200,000 in the Chinese Mainland in H1 2026.
China remains central to Xiaomi’s market position. Chinese Mainland revenue was RMB69.7 billion in Q2 2026, equal to 64.0% of total revenue. Rest-of-world revenue was RMB39.3 billion, or 36.0% of total revenue, mainly from Europe and India. The Chinese market is especially important for premium smartphones and smart EVs.
Xiaomi competes directly with Apple, Samsung, Huawei, OPPO, vivo and other Android handset makers in smartphones. In IoT and wearables, it competes with Apple, Samsung, Huawei and specialist consumer electronics brands. In China’s smart EV market, it competes with domestic EV makers and technology-led auto platforms.
Compared with Apple, Xiaomi has a broader value-priced hardware range and a larger emphasis on IoT categories and smart EVs. Apple has stronger premium pricing power and services monetization, while Xiaomi’s advantage lies in device breadth, China scale, emerging-market reach and the integration of phones, home devices and vehicles into one consumer ecosystem.
China is Xiaomi’s central market. In Q2 2026, Chinese Mainland revenue was RMB69.7 billion, equal to 64.0% of total revenue, while H1 2026 Chinese Mainland revenue was RMB129.2 billion, or 62.1% of total revenue. The market is especially important for Xiaomi’s premium smartphones and smart EV business. Smartphones priced at RMB3,000 or above reached 32.1% of Xiaomi’s Chinese Mainland smartphone units in Q2 2026, a company record. Smart EV deliveries reached 104,199 vehicles in Q2 2026, and the SU7 Series ranked No. 1 by sales volume among pure electric sedans above RMB200,000 in the Chinese Mainland in H1 2026. Xiaomi’s local strategy centers on its “Human × Car × Home” ecosystem, linking HyperOS, AI, smart home devices and vehicles. Main competitors include Huawei, Apple, OPPO, vivo, BYD and Tesla. Q2 margins were pressured by 618 shopping festival promotions and higher component costs.
Xiaomi’s growth profile is shifting from a smartphone-led hardware model toward a broader connected device, services and smart EV platform. The latest results show both progress and pressure. In Q2 2026, revenue was RMB108.9 billion, down 6.1% year over year but up 9.9% quarter over quarter. Adjusted net profit fell 42.6% year over year to RMB6.2 billion, while gross margin declined to 19.8%. The turning point is the growing scale of smart EVs, AI and other new initiatives, which generated RMB24.9 billion of Q2 revenue, equal to 22.9% of the group total.
The outlook depends on Xiaomi’s ability to scale EVs while improving segment losses, defend smartphone margins despite memory cost inflation, and convert its large installed base into recurring services revenue. Its global smartphone position and AIoT scale give it a durable distribution base, but near-term earnings growth is constrained by component costs, China exposure and heavy investment in vehicles and AI.
Next Earnings Planned for:
August 26, 2026
This Company Profile was written by Dominik Diemer
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