Analysis: Xiaomi's Smartphone Business Slowed in Q1 2025, Despite Surging Performance in China

Xiaomi posts 7th straight quarter of growth in Q1 2025, driven by China subsidies. Overseas performance mixed amid premium market ambitions.

Xiaomi’s smartphone business continued the growth trajectory in Q1 2025 for the seventh quarter in a row. The Chinese vendor outperformed the market with a 3% YoY growth rate. Its strong momentum in its home market deserves most credit, where the vendor benefited greatly from the government’s smartphone subsidy program. However, the performance in overseas markets remained mixed, dragging down the vendor's total performance this quarter. While Xiaomi is eyeing to gain more ground in premium segments in overseas markets to replicate its success in China, we caution that this is a long-term commitment and faces huge uncertainties ahead.