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Xiaomi

Human × Car × Home, 2026 to 2030

Human × Car × Home
Xiaomi’s corporate strategy

Human × Car × Home

Xiaomi sells phones, everything that connects to them, and now cars, and it plans them as one ecosystem it calls Human × Car × Home. In 2025 it made record revenue of RMB 457.3 billion. In the second quarter of 2026 memory costs rose, phone shipments fell by more than a quarter, and revenue fell 6.1%, while car deliveries grew 28.2%. Xiaomi is responding by raising the price per phone, selling more cars, and spending more than RMB 200 billion on research over five years.

Phones and the home · Cars · Core technology and AI

Phones and the home

  1. Premium phonesAdvance the premiumization strategy and proactively improve the product mix.
  2. New retailExpand the new retail model in overseas markets, across Southeast Asia, Europe, East Asia, Latin America, the Middle East, and Africa.
  3. One ecosystemExpand the user ecosystem, with AI empowering the Human × Car × Home ecosystem.,
v1.0
  • The average phone price rose 25.9% to a record RMB 1,351 in the second quarter of 2026, while shipments fell to 31.2 million from 42.4 million.
  • 32.1% of mainland phones sold were at RMB 3,000 or more, a record and up 4.5 percentage points.
  • Connected IoT devices rose 17.4% to 1,160.8 million, and 24.6 million users have five or more.
  • Xiaomi has more than 640 new retail stores overseas, up from about 450 at the end of 2025.,

Xiaomi’s platform connects 1.16 billion devices

Connected devices leave out phones and tablets, and the monthly users of Xiaomi’s services include them. Each dot is ten million.

1160.8m

up 17.4% on a year earlier

IoT devices on the AIoT platform, without phones and tablets. June 2026.

Phone shipments fell 26.5% as prices rose 25.9%

Memory costs rose over the year. Xiaomi delivered 28.2% more cars at a price 9.6% lower. Each block’s area is revenue: units across, average price up.

Second quarter of 2026

Sold
31.2 million phones−26.5%
Average price
RMB 1,351+25.9%
Phone revenue
RMB 42.1bn
Smartphone gross margin
8.5%
Average priceUnits soldRMB 42.1bn8.5% margin

550,000 car deliveries in 2026

Xiaomi delivered 411,082 vehicles in 2025. In the first half of 2026 it delivered 80,856 in the first quarter and 104,199 in the second.

0185,055First half of 2026364,945 still to deliver33.6% of 550,000

The first half is the two quarters added together, and the distance left is the target less what has been delivered. Xiaomi reports neither sum.

  1. Give the strategy a shape that fits on a page.

    Human × Car × Home is three words and two crosses, and Xiaomi’s reports present its AI models and its stores as serving it. We recommend a company-level statement short enough that a new starter can place their own work in it without asking.

  2. When a cost rises, trade volume for price on purpose.

    Memory costs pushed phone gross margin from 11.5% to 8.5% in a year. Shipments fell 26.5%, in part by choice: Xiaomi cut mid-range and low-end models, and the average price rose 25.9%, so phone revenue fell 7.5%. We recommend choosing which lever to give up when a constraint appears, and saying so, rather than letting every line slip together.

  3. Fund the long bet as a total.

    Xiaomi does not set research and development as a share of each year’s revenue. It states a five-year sum, above RMB 200 billion, while a quarter’s profit is down 42.6%. We recommend giving a long bet its own multi-year budget, so a weak quarter does not reopen it.

Sources

  1. 1. Xiaomi Corporation (2026). Annual results announcement for the year ended 31 December 2025. Hong Kong Exchanges and Clearing, 24 March 2026. www1.hkexnews.hk
  2. 2. Xiaomi Corporation (2026). Results announcement for the three and six months ended 30 June 2026. Hong Kong Exchanges and Clearing, 18 August 2026. www1.hkexnews.hk

Headwater is not connected with Xiaomi Corporation. Xiaomi is a trade mark of its owner. Updated 28 September 2026.

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