Xiaomi, which maintains its position in the top three globally in the smartphone market, shipped 31.2 million units in the second quarter. The company’s most notable move during this period is its deliberate reduction of shipments in the lower segment, shifting its product structure towards the higher segment. As a result of this strategy, the average selling price (ASP) reached a record high of 1,351 yuan, a 25.9% increase year-on-year. Models priced at 3,000 yuan and above in the Chinese market saw their share of sales rise to 32.1%.

Despite the rise in average selling prices, sharp cost increases, particularly in storage and memory components, reduced the gross profit margin of the smartphone segment from 11.5% to 8.5%. In the short term, company management aims to stabilize profitability and market share rather than focusing solely on shipment volume.

On the IoT and consumer electronics side, revenues decreased by 19.2% year-on-year to 31.3 billion yuan. While the end of subsidies for household appliances in China contributed to this decline, the number of active devices connected to the AIoT platform reached 1.16 billion. Although internet services revenue remained stable at 9 billion yuan, it became the highest-grossing operation of the quarter with a gross profit margin of 76.8%.

Electric Vehicle Deliveries Increasing, SUV Models on the Way

Xiaomi’s automotive and innovative enterprises segment continues to scale with high delivery numbers. In the second quarter, the company delivered 104,000 electric vehicles, a 28.2% increase year-on-year, and generated 23.9 billion yuan in revenue from this sector. Reaching a total of 216,000 deliveries in the first seven months of the year, the brand is increasing its production pace to reach its year-end target of 550,000 units.

Due to changes in the distribution of vehicle models and increasing cutting costs, an operating loss of 2.6 billion yuan is recorded in innovative business lines, including the automotive segment. However, this loss shows a recovery trend compared to the 3.1 billion yuan loss in the first quarter of the year.

Pengcheng Series and Global Expansion Plan

• New SUV Models: The official launch of the Pengcheng N90 MAX and N70 MAX SUV models, built on the Kunlun architecture and featuring a range extender (EREV), which were introduced in July, will take place in September.

• Target Audience: The Pengcheng series targets direct families and multi-passenger use, focusing on new customers outside the existing SU7 sedan user base.

• Global Markets: Xiaomi Auto’s official launch date in global markets outside of China is planned for the second half of 2027. The company continues to build independent service and spare parts networks while leveraging existing smartphone and IoT distribution channels.

MiMo Large Tongue Model and Humanoid Robots Become a Revenue Source

The financial report officially includes the Xiaomi MiMo large tongue model series for the first time. The MiMo architecture, which has started generating revenue through API invitations and enterprise token issuances, is deeply integrated into the HyperOS operating system, the Super Xiao Ai assistant, and the Mi Home smart home platform. For now, the company prioritizes expanding the model’s capabilities into the “Human x Car x Home” ecosystem.

Concrete steps are also being taken in humanoid robot projects, which are an extension of artificial intelligence in the physical world. A 1.7-meter-long, full-size humanoid robot, tested in material feeding and assembly lines at its own car manufacturing facilities, is planned to be exhibited for the first time at the World Robot Conference. The company’s strong cash reserves and share buyback programs ensure uninterrupted investment in new technologies despite periodic profit pressures.