Xiaomi Reports Record $50.7 Billion Revenue in 2024 as EV and AIoT Drive Growth

Xiaomi’s Record-Breaking 2024: What Investors Need to Know

A Year of Unprecedented Growth

On March 18, Xiaomi Corporation released its 2024 annual financial report, marking a record-breaking year for the company. With total revenue hitting RMB 365.9 billion ($50.7 billion), the company saw an impressive 35% year-over-year (YoY) growth. Adjusted net profit surged to RMB 27.2 billion ($3.77 billion), up 41.3%, marking the highest in Xiaomi’s history.

Xiaomi’s revenue growth was fueled primarily by two key sectors:

Smartphone and AIoT: Revenue reached RMB 333.2 billion ($46.2 billion), a 22.9% increase.
Electric Vehicles (EVs) and Emerging Businesses: Generated RMB 32.8 billion ($4.55 billion), marking Xiaomi’s strong entry into the automotive sector.

A particularly notable milestone was Q4 2024, when Xiaomi reported quarterly revenue surpassing RMB 100 billion ($13.9 billion) for the first time—a 48.8% YoY increase.

The Xiaomi EV Disruption: A New Growth Engine

The Xiaomi SU7 electric vehicle (EV) played a pivotal role in the company’s revenue breakthrough. With 136,854 units delivered in its first year, Xiaomi’s entry into the EV market is proving to be more than just an ambitious experiment. The company’s EV unit reported a 20.4% gross margin in Q4, a figure that already places it among top-tier industry competitors.

More significantly, Xiaomi’s EV orders are still outpacing supply. As of March 2025, Xiaomi has over 150,000 pre-orders awaiting delivery, indicating strong consumer demand and brand crossover appeal. Industry observers note that Xiaomi’s brand has effectively “broken out” beyond its traditional smartphone loyalists, attracting former Tesla, Apple, and even Huawei customers.

While the EV segment posted a net loss of RMB 7 billion ($970 million) in Q4, this is relatively small compared to the typical cash burn seen in the automotive sector’s early scaling stages. For context, Xiaomi’s EV margins already outperform Li Auto’s Q4 2024 automotive gross margin of 19.7%. As production scales and efficiencies improve, Xiaomi’s EV business is poised to turn profitable sooner than most analysts initially predicted.

Smartphone Division: Holding Strong Amid Industry Challenges

Despite entering a saturation phase in the global smartphone market, Xiaomi’s smartphone business remains resilient. The company’s smartphone market share in Q4 2024 reached 15.8%, with 21.8% revenue growth YoY, pushing annual revenue in the segment to nearly RMB 200 billion ($27.3 billion).

Key drivers of this growth:

Strong performance in the premium segment: Xiaomi 14 series and 15 Ultra saw record-breaking sales, reinforcing the brand’s growing presence in high-end smartphones.
Cross-promotion with Xiaomi EVs: The SU7’s success has spilled over into smartphone sales, bringing in new customers from outside Xiaomi’s traditional user base.

This shift is notable because Xiaomi has historically struggled to compete with Apple and Samsung in the premium market. However, the company’s ability to leverage its EV ecosystem and AIoT integration may provide a competitive edge in the long term.

IoT and Smart Home: A Billion-Dollar Business

Beyond smartphones and EVs, Xiaomi’s AIoT (Artificial Intelligence of Things) and smart home division continues to post double-digit growth. In 2024, Xiaomi shipped over 6.8 million AIoT devices, marking over 50% growth for more than 10 consecutive quarters.

Strategic investments in high-margin categories such as smart home appliances (air conditioners, refrigerators, and washing machines) have strengthened Xiaomi’s ecosystem. The completion of Xiaomi’s Wuhan smart appliance factory in 2025 is expected to further boost profitability and scale.

Internet Services: The High-Margin Powerhouse

One often-overlooked segment is Xiaomi’s internet services, which continue to be the company’s most profitable unit. In Q4 2024, internet services revenue reached RMB 33.4 billion ($4.57 billion), with an industry-leading 76.5% gross margin.

Unlike hardware, which operates on razor-thin margins, Xiaomi’s internet ecosystem—driven by MIUI ads, gaming, and fintech services—is the backbone of its profitability. This model mirrors Apple’s services revenue playbook, reinforcing Xiaomi’s long-term sustainability beyond hardware sales.

What’s Next? 2025 and Beyond

Looking ahead, Xiaomi is expected to surpass RMB 400 billion ($54.5 billion) in revenue by 2025, with key growth catalysts including:

Xiaomi SU7 Ultra & YU7: Expansion of the EV lineup, including a higher-end model.
Global expansion of smart appliances & IoT: Further penetration into overseas markets.
AI-driven services & software ecosystem: Continued monetization of MIUI and cloud services.
Strategic investments in AI, EV automation, and robotics.

Investor Takeaways

Xiaomi’s 2024 performance underscores its transition from a smartphone-centric company to a diversified tech giant. While EVs remain the most exciting segment, the broader ecosystem—spanning AIoT, internet services, and smart appliances—creates multiple revenue streams that mitigate risk.

For investors, key considerations include:

Sustained revenue growth: Even with initial losses in the EV segment, Xiaomi’s profitability trajectory remains strong.
Diversification & ecosystem play: The ability to integrate smartphones, EVs, and smart home products into a unified ecosystem is a powerful differentiator.
Competitive positioning in EVs: With a faster-than-expected scaling strategy, Xiaomi could emerge as a serious challenger to Tesla and other established players.

Xiaomi’s record-breaking year is not just about numbers—it’s about a strategic transformation that could reshape the company’s future trajectory.