Xiaomi Revenue Breakdown: Smartphone, IoT, Internet, etc.

Devices. Pixabay Image.

This article presents Xiaomi’s revenue breakdown within the Smartphone × AIoT segment.

You may find more information about the top-level revenue and revenue share of the Smartphone × AIoT segment in this page: Xiaomi revenue breakdown: Smartphone, EV, and AI.

For your information, Xiaomi’s Smartphone × AIoT segment consists of several revenue categories, including Smartphones, IoT & Lifestyle Products, Internet services, and others.

Let’s dive in!

For other statistics of Xiaomi, you may find more information on this page: Xiaomi key stats.

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Definitions

To help readers understand the content better, the following terms and glossaries have been provided.

Xiaomi Smartphone × AIoT: In Xiaomi’s business model and financial reporting, “Smartphone × AIoT” is a core operational segment that defines how the company integrates its hardware categories to drive ecosystem lock-in and high-margin software revenue.

The multiplication sign (“×”) is intentional. It represents a shift from a simple addition of products to a multiplier effect, where the smartphone acts as the central brain that amplifies the value, connectivity, and data collection of all other connected devices.

1. The Core Components of the Segment

The segment brings together Xiaomi’s massive consumer hardware categories under a unified umbrella:

• Smartphones: The primary hub. Devices ranging from the budget-conscious Redmi series to premium flagship models (like the Xiaomi Ultra series).

• AIoT (Artificial Intelligence of Things): The vast web of interconnected consumer hardware. This is categorized into:

  • Smart Large Home Appliances: Air conditioners, refrigerators, and washing machines.

  • IoT and Lifestyle Products: Smart TVs, robot vacuums, routers, smart speakers, security cameras, and ambient lighting.

  • Wearables and Personal Tech: TWS earbuds, smartwatches, fitness bands, and tablets.

2. The Operational Engine: Xiaomi HyperOS

The actual glue holding the “Smartphone × AIoT” segment together is software—specifically Xiaomi HyperOS.

• Instead of running separate, siloed software on a phone versus a smart vacuum, HyperOS serves as a unified system layer. This allows for cross-device intelligent framework connectivity (Xiaomi HyperConnect), which enables features like fluidly casting an active video from a phone to a TV, or letting a tablet use a phone’s cellular data effortlessly.

3. The Financial Philosophy: The “Flywheel”

Financially, Xiaomi treats the Smartphone × AIoT segment as a low-margin customer acquisition funnel designed to feed their Internet Services segment.

• By keeping hardware profit margins deliberately lean, they sell a massive volume of phones. Once a user owns a Xiaomi phone, the “attach rate” for AIoT products increases because a Xiaomi-branded watch or air conditioner pairs and operates better within the native ecosystem. Once a household has 5 or more connected devices, the switching cost to move to an iPhone or Samsung becomes incredibly high.

4. Evolution into “Human × Car × Home”

While Smartphone × AIoT remains a primary reporting pillar for Xiaomi’s consumer technology segment, Xiaomi upgraded its overarching corporate strategy to “Human × Car × Home.”

• This evolution took the established infrastructure of the Smartphone × AIoT segment and structurally plugged in their new Smart EV initiative (beginning with the SU7 and YU7 vehicles). The vehicle is now treated as an extension of the AIoT ecosystem—essentially a giant smart device that syncs seamlessly with the user’s smartphone and smart home settings.

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Insight & Summary of Xiaomi’s Smartphone × AIoT Segment Revenue Breakdown

The following analysis consolidates the trends observed across Xiaomi’s Smartphone × AIoT segment revenue for the 2017–2025 period.

• Total Segment Revenue: Scale, Recovery, and Structural Recomposition Xiaomi’s Smartphone × AIoT segment grew from ¥114,625M (FY2017) to ¥351,217M (FY2025) in RMB, tripling over eight years at a ~15% CAGR in local currency. In USD terms the segment expanded from $17,194M to $52,683M over the same period. The trajectory was not linear: a peak of ¥328,309M in FY2021 was followed by two consecutive contractions — -14.7% (FY2022) and -3.2% (FY2023) — driven almost entirely by smartphone volume weakness, before recovering to a new all-time high of ¥351,217M in FY2025.

  The FY2023–FY2025 average total revenue of ¥318,447M growing at 8.4% average annual growth reflects a segment re-establishing its growth trajectory but at a more moderate pace than the pre-pandemic era. The structural composition of this growth, however, is more important than the aggregate — the segment is being fundamentally rebalanced away from hardware.

• The Smartphone Business: Volume-Driven, ASP-Constrained, Moderating Smartphone revenue — the segment’s largest component — peaked at ¥208,869M in FY2021 at 190.3 million units and has not recovered to that level. In FY2025, smartphone revenue stood at ¥186,440M on 165.2 million units, below both the FY2021 revenue peak and the FY2024 volume and revenue figures of 168.5M units and ¥191,759M.

  The FY2025 sequential decline of -2.8% despite a broadly stable volume base (165.2M vs 168.5M in FY2024) reflects the combined effect of modest ASP compression (¥1,129 vs ¥1,138 in FY2024) and competitive pricing dynamics in Xiaomi’s core mid-range segments. The FY2023–FY2025 average growth of just 4.4% is the weakest of all segment components and confirms that the smartphone business, while not in structural decline, is not a volume or pricing tailwind for overall segment growth.

• ASP and Shipment Volume: Anatomy of Smartphone Revenue The relationship between smartphone ASP, shipment volume, and revenue across the dataset is instructive. Xiaomi’s ASP has risen from ¥881 (FY2017) to ¥1,129 (FY2025) — a 28% improvement over eight years — driven by a deliberate mix shift toward higher-end SKUs (the Xiaomi 12/13/14 flagship series and the premium Ultra tier). Yet this improvement is modest in absolute terms: ¥1,129 (~$169) still places Xiaomi firmly in the mid-to-value tier globally, and the FY2022–FY2023 volume collapse demonstrated that Xiaomi’s revenue base is predominantly volume-elastic rather than price-elastic.

  When shipments dropped from 190.3M (FY2021) to 150.5M (FY2022) and 145.6M (FY2023), revenue fell -19.9% and -5.8% respectively, despite ASP being broadly flat. Conversely, the FY2024 recovery to 168.5M units at ¥1,138 ASP drove a +21.8% smartphone revenue rebound. The data is unambiguous: Xiaomi’s smartphone revenue is a direct function of unit economics rather than pricing power, and any ASP gain above ¥1,200+ would represent a meaningful strategic inflection that the current dataset does not yet show.

• IoT & Lifestyle: The Consistent Compounding Engine IoT & Lifestyle Products is the most structurally compelling component of the segment, growing from ¥23,448M (FY2017) to ¥123,200M (FY2025) — more than a fivefold increase over eight years — at a CAGR of approximately 23%. Critically, IoT revenue demonstrated resilience that the smartphone business could not: in FY2022 when smartphones fell -19.9%, IoT declined only -6.1%, and in FY2023 when smartphones fell again, IoT grew +0.4%. The FY2024–FY2025 acceleration — +30.0% and +18.3% — confirms that the transition of the smart home segment into a mainstream consumer category is generating durable platform growth.

  IoT’s revenue mix expanded from 20.5% (FY2017) to 35.1% (FY2025), and at the current trajectory, IoT revenue will surpass 40% of the total Smartphone × AIoT segment within two to three fiscal years. This is the most strategically significant trend in the dataset: Xiaomi is gradually transforming from a smartphone company into an ecosystem company, with IoT as the architectural foundation.

• Internet Services: The Highest-Quality Revenue Component Internet services revenue has grown consistently in every single year since FY2017 — from ¥9,896M to ¥37,440M — a remarkable record of uninterrupted growth across two economic cycles, a pandemic, and a smartphone volume contraction. With zero negative years in the entire dataset, internet services is the highest-quality revenue component on a stability basis.

  Growth has moderated from the high double digits of FY2018–FY2019 (61.2%, 24.4%) to a steadier 6–13% range in FY2023–FY2025, consistent with an increasingly mature monetised user base. The FY2023–FY2025 average growth of 9.8% against a revenue base approaching $5B USD positions internet services as a meaningful absolute earnings contributor, even though its 10.7% mix share understates its disproportionate contribution to profitability given its software margin profile.

• Structural Takeaway: The mix evolution across the dataset defines Xiaomi’s strategic trajectory: smartphones compressed from 70.3% to 53.1% of the segment; IoT expanded from 20.5% to 35.1%; internet services held steady at ~10%. The declining smartphone share is not a loss of competitive position — smartphone revenue in absolute terms has grown — but rather a reflection of IoT and internet services growing faster.

  This rebalancing is margin-accretive and risk-reducing: IoT provides ecosystem lock-in (cross-selling of connected devices deepens Home App engagement); internet services provides recurring software revenue with high visibility; and smartphones remain the acquisition channel through which new users enter the ecosystem. The FY2023–FY2025 average of ¥318,447M in total revenue at 8.4% growth, with IoT at 16.2% and internet services at 9.8%, suggests the segment’s growth durability is improving even as headline growth normalises.

The table below combines all key Xiaomi’s Smartphone × AIoT segment revenue metrics into a single view for the latest three fiscal years.

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Xiaomi’s All Revenue Categories within the Smartphone × AIoT Segment (RMB$)

You may find more information about Xiaomi’s Smartphone × AIoT segment here: Smartphone × AIoT.

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Xiaomi’s All Revenue Categories within the Smartphone × AIoT Segment (USD$)

You may find more information about Xiaomi’s Smartphone × AIoT segment here: Smartphone × AIoT.

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Xiaomi’s Smartphone Shipments and ASP

You may find more information about Xiaomi’s Smartphone × AIoT segment here: Smartphone × AIoT.

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Revenue Mix for All Categories within the Smartphone × AIoT Segment

You may find more information about Xiaomi’s Smartphone × AIoT segment here: Smartphone × AIoT.

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Revenue Growth for All Categories within the Smartphone × AIoT Segment

You may find more information about Xiaomi’s Smartphone × AIoT segment here: Smartphone × AIoT.

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Credits And References

1. All data presented in this article were obtained and referenced from Xiaomi’s quarterly and annual reports published on the company’s IR: Xiaomi Investor Relations.

2. Pixabay Images.

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Disclosure

We may use artificial intelligence (AI) tools to assist us in writing some of the text in this article. However, the data is directly obtained from original sources (usually the quarterly and annual reports) and meticulously cross-checked by our editors multiple times to ensure its accuracy and reliability.

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