Selling Smartphones, EVs, and Lifestyle Products

Xiaomi is a Chinese technology company that manufactures smartphones, wearable devices, and smart home devices, which it calls lifestyle devices. Lifestyle devices include products for outdoor, office, health and fitness, and tools.

Xiaomi’s stated corporate strategy is to connect humans to cars, home products, and devices for an electronically integrated lifestyle in what it calls “Human x Car x Home.” Its proprietary operating system, HyperOS, powers the ecosystem it has designed, which “…proactively serves your needs and flows as you wish.”

Xiaomi Financials

As of this writing, Xiaomi’s 2024 annual report had not been published, so results from the third quarter 2024, and nine months ended Sep. 30, 2024, are used. Results are in renminbi (¥):

• Quarterly Net Profit: ¥5,340 million
• Quarterly Net Profit Nine Months Ended Sep. 30, 2024: ¥14,583 million
• Growth in Net Profit: 5.3%
• Growth in Net Profit Nine Months Ended Sep. 30, 2024 (YoY): 14.4%
• Adjusted Net Profit (Non-IFRS): ¥6,252 million
• Adjusted Net Profit (Non-IFRS) Nine Months Ended Sep. 30, 2024 (YoY): ¥18,918 million
• Growth Adjusted Net Profit: 1.2%
• Growth Adjusted Net Profit Nine Months Ended Sep. 30, 2024 (YoY): 31.7%
• Quarterly Revenue: ¥92,506 million
• Revenue Nine Months Ended Sep. 30, 2024: ¥256,901 million
• Growth in Revenue: 4.1%
• Growth in Revenue Nine Months Ended Sep. 30, 2024 (YoY): 29.9%

Xiaomi experienced record revenue in the third quarter of 2024, shipping 43.1 million smartphones, a 3.1% increase from the previous year, and increasing its ecosystem’s monthly active users to 685.8 million, a 10.1% increase from the previous year. The company’s Internet of Things (IoT) and lifestyle products sales increased 26.3% year-over-year, and its artificial intelligence-enhanced IoT platform users reached 861.4 million.

Xiaomi’s share price on the Hong Kong Exchange tripled between August 2024 and February 2025, from a closing price of HKD 16.08 on Aug. 5, 2024, to HKD 51.70 on Feb. 17, 2025.

Xiaomi’s Business Segments

Xiaomi’s business model is broken into two segments: smartphones and AIoT, and Smart EV and New Initiatives. Smartphones and AIoT is further categorized into the following subsegments:

• Smartphones
• IoT and Lifestyle Products
• Internet Services
• Other

Smartphones

Xiaomi continues to earn most of its revenue from phones, which generated ¥47,452 million in revenue for the third quarter. Mainland China accounts for 56.6% of its smartphone sales, with the rest sold in India and Europe.

The smartphone segment generated ¥5,547 million in income in the third quarter of 2024, down 20% from the same period in 2023. Smartphones accounted for 51% of Xiaomi’s total revenues.

IoT and Lifestyle Products

Internet of Things and Lifestyle Products include products such as smart lighting, home wireless products, health and fitness products, tools, and outdoor equipment and devices. This segment is Xiaomi’s second-largest revenue-generating segment. It generated ¥26,102 million in revenues and brought in ¥5,418 million in income in Q3 2024, a 47% increase from the same period in 2023. This segment accounted for 28.22% of Xiaomi’s total revenues.

Internet Services

Xiaomi’s third-largest revenue generating segment is its Internet Services, which provides apps, gaming, and content and services to users of its products. Internet services generated ¥8,463 million in revenues and ¥6,555 in income in Q3 2024, a 13.6% increase from Q3 2023. The Internet Services segment accounted for 9.15% of Xiaomi’s total revenues.

Other Related Business Activities

Xiaomi uses this segment to account for installation services, product repair services, and materials sales. Other Related Business Activities generated ¥792 million in revenues but experienced a loss of ¥299 million in income, an 8.11% loss from Q3 of 2023. Other Related Business Activities account for 0.86% of Xiaomi’s total revenue.

Smart Electric Vehicles (EV) and New Initiatives

Smart EV and New Initiatives is one of Xiaomi’s new endeavors, as it launched its first smart EV in March 2024. The new initiatives section of this segment is EV related activities and research. This segment generated ¥9,697 million in revenues and ¥1,660 million in income in Q3 2024 accounting for 10.48% of total revenues.

Xiamomi’s Recent Developments

In March 2024, Xiaomi launched its highly anticipated SU7 series of vehicles. Through the end of Q3 2024, the company produced 100,000 vehicles (in 230 days) and delivered 67,157. In 2024, it added more than 3,000 physical stores in mainland China, where consumers can purchase EVs and other products.

Xiaomi continues to add and upgrade products that connect with its AIoT (AI and Internet of Things) ecosystem, and its popularity is growing. In Q3 2024, one million users with five or more devices were added to the platform, bringing the total number of AIoT users with more than five connected devices to 17.1 million.

Examples of these devices are washing machines, air conditioners, refrigerators, wearables, tablets, and more.

In October 2024, Xiaomi launched its high-performance EV, the SU7 Ultra, reportedly capable of speeds of up to 350 km/h (217 m/h) and accelerating to 100 km/h (62 m/h) in 1.98 seconds. On October 29, the SU7 Ultra Prototype completed a lap challenge at Nürburgring Nordschleife in 6 minutes, 46.874 seconds (the current lap record for production super sports cars is 6 minutes, 29.09 seconds).

The Bottom Line

Xiaomi is a Chinese-based electronics manufacturer with a global presence. As far as tech companies go, it has only been around since 2010. Its youngness and success indicate the abilities of its founders and leadership, and it will be interesting to see where they take the company.