By CeciliaPang - Own work, CC0,
On Tuesday, Xiaomi, the Chinese technology company, announced a nearly 50 percent increase in its fourth-quarter revenue, surpassing analysts’ expectations. The company has also revised its electric vehicle delivery target for this year, raising it from 300,000 to 350,000 units.
As the third-largest smartphone manufacturer globally, Xiaomi’s product offerings include home appliances and vehicles. The company revealed plans to enhance its retail presence in China this year and aims to establish 10,000 new Mi Home stores internationally over the next five years.
Xiaomi reported a 48.8 percent increase in fourth-quarter revenue, reaching 109 billion yuan ($15.1 billion), which exceeded the average forecast of 103.94 billion yuan from 17 analysts surveyed by LSEG. The adjusted net profit rose by 69.4 percent year-on-year to 8.32 billion yuan, surpassing the average estimate of 6.399 billion yuan.
During an earnings call, Xiaomi President Lu Weibing expressed optimism about the potential for the company’s diverse product range—including smartphones, tablets, and vehicles—in international markets, although he acknowledged that the challenges of global expansion are “quite high.”
Lu indicated that the company plans to commence international car shipments by 2027.
Prior to the earnings announcement, Xiaomi’s shares, listed in Hong Kong, experienced a 3.3 percent increase. Over the past year, the stock has surged by 284 percent, driven by investor excitement regarding its electric vehicle strategy.
Xiaomi commenced its electric vehicle (EV) production last year with the introduction of the SU7 sedan, diversifying from its primary focus on smartphones, home appliances, and smart devices over the past 15 years.
In 2024, the company reported revenues of 32.1 billion yuan from its EV sector, having delivered over 135,000 units of the SU7 sedan. However, the adjusted net loss associated with its EV ventures and other new projects amounted to 6.2 billion yuan.
During the fourth quarter, Xiaomi’s global smartphone shipments increased by 5 percent year-on-year, reaching 42.7 million units, which positioned the company third in the global market with a 13 percent market share, according to data from Canalys.
In its largest market, China, shipments experienced a significant rise of 29 percent, totaling 12.2 million units during the same timeframe, securing the fourth position with a 16 percent market share, as reported by Canalys.
Lu indicated that Xiaomi’s target for smartphone shipments this year is 180 million units, compared to the previous year, and mentioned that the company plans to allocate up to 8 billion yuan—approximately a quarter of its total research and development budget—for AI-related projects this year.
