Xiaomi Outpaces Forecasts with Strong Revenue Growth Amid Expanding EV and IoT Initiatives

Xiaomi Corp. $1810.HK reported revenue of 111.3 billion CNY (15.5 billion USD) for the March quarter, outperforming analyst consensus which stood at 109 billion CNY. This outcome demonstrates the company’s successful dual-focus strategy: intensifying its footprint in China’s electric vehicle (EV) sector while strengthening its legacy smartphone business.

Rapid Progress in Electric Vehicle Segment

The automotive division has become a dynamic driver of Xiaomi’s growth plans. Delivering 75,869 SU7 sedans in the period, Xiaomi continues to embed itself deeper into the competitive Chinese EV landscape, where global leaders like Tesla Inc. $TSLA and BYD Co. $1211.HK remain dominant. Although the EV segment posted a loss of 500 million CNY, an improvement from the previous 700 million CNY, the trend signals a path to operational efficiency as volumes increase and cost optimization continues.

IoT and Smart Devices Fuel Expansion

Xiaomi’s Internet of Things and smart device department continues to deliver standout performance, showing a remarkable near-60% year-over-year revenue increase. The surge is attributed to robust demand for a diverse portfolio of products, spanning home appliances, smart gadgets, and wearables. Success in this segment reinforces Xiaomi’s diversification efforts and strengthens its role as a leading technology innovator.

Strategic Moves Behind Xiaomi’s Positive Momentum

1. Outperforming revenue estimates through robust sales in core and new business lines;

2. Aggressively scaling EV deliveries with the SU7;

3. Narrowing EV losses, reflecting cost and operational improvements;

4. IoT division achieving accelerated growth and contributing meaningfully to overall revenue;

5. Active advancement of the 10 billion USD initiative led by co-founder Lei Jun;

6. Launch of the YU7 sport EV, scheduled to hit the market in July, underpins continued product innovation.

Execution of Long-Term Vision

Beijing-based Xiaomi is positioning itself to become a significant player in the global automotive industry, driven by a deliberate 10 billion USD investment blueprint championed by Lei Jun. The firm’s agile allocation of resources to both established and emerging markets highlights its balanced and resilient approach. While the smartphone segment remains profitable and sustainable, the strategic shift towards EVs and IoT products aims to secure future growth in increasingly saturated markets.

Industry Outlook

With the pace of innovation accelerating and the competitive landscape intensifying, especially within the China EV market, Xiaomi’s ability to scale efficiently and introduce differentiated products will be key to maintaining growth and protecting margins. The narrowing EV loss and the successful launch pipeline suggest Xiaomi is charting a course towards long-term diversification and profitability.