After overcoming a complex competitive environment, Xiaomi has stabilized its position. In the second-quarter report released on August 18, it was stated that revenue reached 108.92 billion yuan, exceeding the 100 billion mark. Furthermore, adjusted net profit reached 6.22 billion, and net profit attributable to shareholders doubled compared to the previous quarter, reaching 9.46 billion.
Smartphones and the AIoT ecosystem continue to form the core of the business, generating 84 billion yuan, including 42.1 billion yuan from smartphone revenue. Another major area is automobiles: Xiaomi delivered over 100,000 vehicles, nearly 30% more than last year, with this segment earning 24.9 billion yuan, including contributions from AI and innovative areas, while the automotive business itself brought in 23.9 billion yuan.
According to Omdia, Xiaomi's shipments entered the top three leaders in 53 countries. The AIoT ecosystem comprises 1.16 billion connected devices, an increase of 17.4%, and 24.6 million users utilize five or more such devices. Compared to the first quarter, Xiaomi has emerged from its darkest period as the phone and automotive segments have stabilized.
The real potential lies in a new wave of technologies. Xiaomi maintained intensive research and development (R&D) spending: costs in the second quarter reached 9.2 billion yuan, an 18.9% increase, with plans to invest at least 200 billion over five years. These funds are primarily directed towards AI and chip development.
Lei Jun called AI the most significant opportunity of the next decade, planning R&D and capital expenditures exceeding 16 billion for 2026 and 60 billion over three years. Positive results are already emerging: in the second quarter, Xiaomi released the MiMo-V2.5 model, which topped monthly and weekly query rankings on OpenRouter, surpassing DeepSeek-V4 Flash. CFO Lin Shiwei noted that the success is due to the model's advantages in capability, inference efficiency, and cost control, and the new MiMo model is currently in training before its imminent release.
HyperOS 4 enables MiMo use cases across phones, IoT, and automobiles, while Super Xiaoai 2.0 allows orchestration of tasks between different applications and devices. MiMo is preparing to launch its first desktop application, in a market featuring players such as Doubao, Kimi, and Qwen Office.
Chips are another key area of focus. Lei Jun announced a ten-year plan worth 50 billion yuan for the creation of Xuanjie chips. President Lu Weibin reported that the O1 chip has been shipped to over a million units across three terminals, and a new generation chip is expected to be released. In robotics, Xiaomi introduced two embodied base models that ranked first on the WorldArena and RoboCasa platforms. Additionally, its new humanoid began operating in a factory, achieving 98% success rate in self-threading nuts.
From base models to applications, from chips to robots—Xiaomi covers all current trends. Although new assets still require investment, phones and AIoT are striving for breakthroughs. According to Omdia, global smartphone shipments decreased by approximately 6% due to rising chip prices and weak demand. Xiaomi's strategy for phones is premiumization and globalization: the average selling price rose to 1,351 yuan, a 25.9% increase and a record high. The share of domestic models priced at 3,000 yuan and above accounted for 32.1% of sales, also a record, as is the share of the premium segment abroad. The most challenging period will be the transition phase coming in the second half of the year.