BEIJING: Chinese electronics giant Xiaomi announced a dip in quarterly profit on Tuesday after slower smartphone sales, while electric vehicles drove a modest surge in annual revenue.
The Beijing-based firm, one of the world’s largest smartphone makers, has expanded rapidly since its launch in 2011 to produce home appliances and electric vehicles and is now eyeing the artificial intelligence market.
Its performance is considered a bellwether for consumer sentiment in China, where authorities are seeking to make domestic spending the main driver of economic growth.
Xiaomi’s total revenue last year was 457 billion yuan ($66 billion), up 25 percent from the previous year, according to a filing with the Hong Kong Stock Exchange.
Adjusted annual net profit reached 39 billion yuan, up 43.8 percent compared to 2024.
However, adjusted net profit was down 23.7 percent on-year in the last three months of 2025, the first quarterly decline since mid-2024 and the biggest drop since the same period in 2022.
READ MORE: Xiaomi says February EV deliveries topped 20,000, down from January
Xiaomi said “headwinds” at the end of last year had hurt its business but defended its economic strength.
“In the fourth quarter of 2025, despite headwinds such as significantly increased memory (chip) costs and intensifying industry competition, we maintained resilience across all business segments,” the company said in the statement.
Electric vehicles were a bright spot.
Xiaomi entered China’s highly competitive EV market in 2024, aiming to win over buyers with a range of high-tech features.
It reached 411,082 vehicle deliveries in 2025 – surpassing a goal of 350,000 – to notch 106.1 billion yuan in revenue from its business segment covering smart EVs and AI.
“In 2026, we will strive to achieve the target of delivering 550,000 vehicles for the entire year,” Xiaomi said in the statement.
Its business segment that includes smartphones, the company’s traditional strength, still accounted for the bulk of sales, with revenue reaching 351.2 billion yuan last year.
However, sales have slowed.
Revenue from smartphones alone in 2025 was 186.4 billion yuan, down 2.8 percent from 191.8 billion yuan in 2024.
Fourth-quarter smartphone revenue was 44.3 billion yuan, down 13.6 percent on-year.
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