Xiaomi first-quarter sales beat estimates on EV, phone growth

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Xiaomi first-quarter sales beat estimates on EV, phone growth.

companies :: 2025-05-27 :: source - bloomberg

By Bloomberg News

(Bloomberg) — Xiaomi Corp. (XIACF, XIACY) reported better-than-expected revenue in the March quarter as it moves to aggressively expand its presence in China’s EV market and grow its core smartphone business.

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Revenue reached 111.3 billion yuan ($15.5 billion), beating the average analyst estimates of 109 billion yuan. The company recorded 75,869 deliveries of its SU7 electric vehicle during the period.

Beijing-based Xiaomi is moving ahead with billionaire co-founder Lei Jun’s $10 billion strategy to join the ranks of the world’s top carmakers. After taking on the likes of Tesla Inc. (TSLA) and BYD Co. (BYDDY, BYDDF) in the crowded EV market last summer, Xiaomi is now pinning its hopes on its first electric sport utility vehicle — the YU7 — which it unveiled last week and will hit the market as early as July.

But BYD is certainly not giving Xiaomi an easy time playing catchup. The Chinese EV leader started a new price war earlier this year by adding advanced driver-assistance features across most of its lineup for no extra cost. Last week, BYD again slashed prices by as much as 34%.

Xiaomi has come under further pressure following a fatal crash in late March that involved its SU7 model, the company’s first sedan. The cause of the accident, which killed three, hasn’t yet been announced. The SU7 had its autopilot function turned on at the time of the crash.

Just days before the accident, Xiaomi had raised its 2025 delivery target for electric vehicles to 350,000 units. But the company’s EV sales took a hit in April, according to Deutsche Bank AG. (DB). The crash also drew growing scrutiny of EV makers’ self-driving advertising claims.

Xiaomi has fared better on its core business front with the company’s smartphone shipments growing 40% year-over-year at home, driven by Chinese government subsidies, according to a recent research note from consultancy Counterpoint. Its share price has also recovered from its March low, surging nearly 90% in the past six months.

Xiaomi is moving to shore up support for its mainstay gadget business by designing its own chips, with a plan to spend $7 billion this decade to bulk up its semiconductor muscle. Together with the new SUV, Lei also publicized the self-designed Xring chip and new mobile devices powered by the processor at the same event last week.

“The new processor could diversify its high-end lineups, expand its potential customer base and strengthen bargaining power with chip suppliers, especially Qualcomm,” Bloomberg Intelligence analysts Steven Tseng and Sean Chen said in a note last week.

—With assistance from Linda Lew and Debby Wu.