Xiaomi Q2 2026 Financial Results: Smartphone Shipments Dip
20.08.26
Xiaomi has reported its financial results for the second quarter of 2026. The company’s revenue reached 108.9 billion yuan ($16.2 billion, €15.35 billion), with a gross margin of 19.8% and an adjusted net profit of 6.2 billion yuan ($919 million, €871 million).
Revenue Distribution by Segment
The bulk of revenue—84.0 billion yuan—was generated by the smartphone and AIoT division, with a 20.0% margin. The development of electric vehicles (EV), AI, and new initiatives brought in 24.9 billion yuan at a 19.2% gross margin, though the EV division remained unprofitable for the quarter. Smartphones alone accounted for 42.1 billion yuan, while the IoT and Lifestyle products segment brought in 31.3 billion yuan.
Premiumization and Pricing
Xiaomi’s average selling price (ASP) for smartphones hit a record 1,351 yuan ($200, €189.5). In China, premium devices accounted for approximately 32.1% of all the brand’s smartphone sales.
Xiaomi phones have reached a record-high average selling price (ASP) as premium models gain popularity.
R&D and AI Innovations
Xiaomi continues to invest aggressively in research and development. The company has already spent 18.2 billion yuan ($3.7 billion, €3.5 billion) this year, with an annual forecast exceeding 40 billion yuan ($5.9 billion, €5.59 billion). R&D staff now account for 47.2% of the total workforce.
Significant work is underway on the MiMo-V2.5 LLM. In July, it generated 10.5 trillion tokens, ranking first globally in efficiency. AI technologies are being actively integrated into the HyperOS 4 interface, which, in beta, showed improved memory management and a 28.9% reduction in video frame drops.
Shipment Statistics and Market Share
Xiaomi remains the world’s third-largest smartphone manufacturer, a position it has held for 24 consecutive quarters. However, quarterly shipments totaled 31.2 million units, a 26.3% decrease compared to the same period last year.
Regionally, the company ranks in the top three everywhere except India (4th place). It holds the second spot in Latin America, the Middle East, and Southeast Asia, and the third in Europe and Africa.
China Market Sales
Sales in mainland China fell to 8.4 million units (14.2% share), compared to 10.3 million in the first quarter of 2026 and 11.5 million in the second quarter of 2025.
Other Devices and Forecasts
In the tablet market, Xiaomi ranks 4th globally, with shipments down 6.8% to 2.8 million units. In the wearable and TWS earbud segments, the company maintains a strong position, ranking 2nd in both the world and China.
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