Xiaomi reported revenue of $16.2 billion for the second quarter of 2026. The company recorded a gross profit margin of 19.8% and adjusted net profit of $919 million.

Xiaomi’s smartphone Average Selling Price (ASP) climbed to a record $200.

Premium smartphones also accounted for a growing share of Xiaomi’s sales in Mainland China. Premium models represented 32.1% of all Xiaomi smartphones sold in the market during the quarter.

Most of Xiaomi’s revenue came from its smartphone and AIoT businesses, which generated $12.6 billion during the quarter. The division posted a gross profit margin of 20.0%.

Meanwhile, Xiaomi’s Smart EV, AI and Other New Initiatives division generated $3.7 billion, with a gross profit margin of 19.2%. However, the EV business recorded a loss during the quarter.

Within the smartphone and AIoT segment, smartphones alone generated $6.3 billion in revenue. IoT and Lifestyle Products contributed another $4.7 billion.

Xiaomi continues to invest heavily in Research and Development. The company has already spent $3.7 billion on R&D this year and expects total spending to exceed $5.9 billion for the full year.

R&D employees now account for 47.2% of Xiaomi’s workforce.

Part of that investment is going into AI model development. Xiaomi’s MiMo-V2.5 large language model generated 10.5 trillion tokens during the week beginning July 20, placing it first globally during that period.

The model is also a major part of HyperOS 4. The operating system is currently in beta and will introduce advanced memory preloading. Xiaomi says it will also reduce dropped frames during video playback by 28.9%.

Xiaomi remains the world’s third-largest smartphone manufacturer, a position it has held for 24 consecutive quarters.

The company shipped 31.2 million smartphones during Q2 2026, giving it an 11.5% share of the global market. However, shipments fell 26.3% compared with the same quarter last year.

Xiaomi ranked among the top three smartphone brands in most major regions. It ranked second in Latin America, the Middle East and Southeast Asia, and third in Europe and Africa. In India, Xiaomi ranked fourth.

Sales in Mainland China also declined. Xiaomi shipped 8.4 million smartphones in the region during Q2 2026, giving it a 14.2% market share.

That compares with 10.3 million units and a 14.4% share in Q1 2026. In Q2 2025, the company shipped 11.5 million units and held a 16.8% market share.

Xiaomi ranks fourth in the tablet market both globally and in Mainland China.

The company shipped 2.8 million tablets during the quarter, representing a 6.8% decline.

Xiaomi continues to perform strongly in wearables and true wireless stereo (TWS) products. It ranks second globally and in Mainland China in both categories.

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