Xiaomi‘s impressive Q2 2025 results, with revenue reaching RMB116.0 billion (approx. P915.24 billion) and a 75.4% increase in adjusted net profit, demonstrate a robust global strategy with significant implications for the Philippine market.
Xiaomi’s “Human x Car x Home” smart ecosystem
The company’s “Human x Car x Home” smart ecosystem is expanding rapidly, fueled by strong growth across its core businesses: smartphones, smart EVs, and smart home appliances. This sustained performance highlights the multinational tech company’s commitment to premiumization and innovation, strategies that directly benefit Filipino consumers.
Xiaomi’s accelerated growth across core businesses
The tech company’s three core businesses all achieved robust growth in the second quarter. The smartphone business generated RMB45.5 billion (approx. P359.0 billion) in revenue, with global shipments (42.4 million units) growing for the eighth consecutive quarter and maintaining a top-three global ranking for the 20th consecutive quarter.
This consistent performance underscores its strong brand loyalty and market presence in the Philippines, where smartphones remain a primary point of entry for digital services and even fintech adoption.
The IoT and lifestyle products segment set a new revenue record of RMB38.7 billion (approx. P305.34 billion), a 44.7% year-over-year increase. This was driven by a 66.2% surge in smart home appliance revenue, defying broader market trends with both price and volume rises.
In the Philippines, this rapid expansion of the tech company’s smart home ecosystem offers new opportunities for consumers to enjoy a more connected lifestyle.
Revenue from the smart EV, AI, and other new initiatives segment reached RMB21.3 billion (approx. P168.06 billion), a massive 234% year-over-year increase. EV revenue alone topped RMB20 billion (P157.8 billion) for the first time, marking a major milestone for the business.
While the current focus for EVs is on Mainland China, this growth reflects the company’s success in high-tech innovation, a capability that will continue to benefit their other product lines globally.
Premiumization and technology at the forefront
The multinational tech company’s strategic focus on premiumization is accelerating across all product categories. The company’s market share in higher-priced smartphone segments continues to expand, showing its ability to compete at the high end of the market.
This strategy is also evident in the overwhelming market response to its first SUV, the Xiaomi YU7 Series, which secured over 240,000 orders within 18 hours of its launch.
The YU7 series has secured over 240,000 orders within 18 hours of its launch
Furthermore, the company continues to deepen its investment in foundational core technologies. The company’s R&D expenses hit a record RMB7.8 billion (P61.54 billion) in the second quarter, up 41.2% year-over-year. As of June 30, 2025, its dedicated R&D personnel reached a new high of 22,641, demonstrating a significant commitment to nurturing a culture of innovation and scientific discovery.
In the chip sector, the tech company unveiled its self-developed 3nm flagship chip, the Xiaomi XRING O1. This makes Xiaomi the fourth company globally, and the first in Mainland China, capable of independently designing and developing a 3nm flagship chip.
The premium flagship smartphone Xiaomi 15S Pro, along with the ultra-premium OLED tablets Xiaomi Pad 7 Ultra and Xiaomi Pad 7S Pro, all powered by Xiaomi XRING O1, were launched sequentially in the second quarter to strong consumer reception. The introduction of this groundbreaking chip underscores Xiaomi’s ambition to control its core technology and deliver a seamless user experience.
Xiaomi also achieved multiple breakthroughs in AI large language models.
In May, the company officially released and open-sourced its multimodal large language model, Xiaomi MiMo-VL-7B. In July, a total of 12 of its papers on large language models were accepted by top-tier global conferences, including ICCV 2025 and ACL 2025 for publication, representing its latest innovative research in the field.
In August, Xiaomi open-sourced its self-developed audio reasoning large language model, MiDashengLM-7B, which achieved state-of-the-art performance on 22 audio understanding and reasoning benchmarks. These developments are not just about raw power; they are about integrating smarter, more intuitive AI into every aspect of the Xiaomi ecosystem.
For the Philippine market, these technological advancements mean that consumers can look forward to more powerful and innovative Xiaomi devices, from tablets to smart home gadgets, all backed by cutting-old-edge R&D. The company’s commitment to pushing the boundaries of technology ensures that its products will remain at the forefront of the consumer electronics industry.
