Xiaomi reports Q4 revenue up 7.3% YoY to ~$17B, narrowly above est., its slowest growth since 2023, as EV sales failed to make up for slumping smartphone demand
Xiaomi Corp. posted its slowest quarterly growth since 2023, after strong sales of its EVs failed to make up for slumping smartphone demand.
Context & Ripple Effects
Xiaomi’s growth had been supported by EV expansion through 2025: first-quarter revenue rose about 50% and second-quarter EV sales helped counter slowing phone demand. By Q3, revenue growth had eased to 22.3% even as AI and EV revenue contributed, making this quarter’s sharper deceleration a test of whether those newer businesses can cushion the core handset cycle.
First-order effects
- Xiaomi’s immediate growth mix is less balanced: EV sales are not currently large enough to offset weaker smartphone demand, leaving total revenue growth at its slowest pace since 2023.
- The narrowly above-estimate result shifts attention from top-line expansion to whether Xiaomi can stabilize handset demand while continuing to scale EV revenue.
Second-order effects
- The reported plan to reduce 2026 smartphone shipment targets would, if implemented, feed through to more cautious component ordering and inventory planning across Xiaomi’s phone supply chain.
- Xiaomi faces greater pressure to extract more value from its installed device base and newer EV business, rather than relying on unit growth in smartphones.
Third-order effects
- The result underscores that EV diversification can broaden a consumer-electronics company’s revenue base without immediately insulating it from handset demand cycles.
- If peers also trim handset plans, the sector could move toward tighter supply-chain purchasing and a greater strategic premium on revenue per active device rather than shipment growth.
The trend: Consumer-device makers are using EVs and adjacent businesses to diversify beyond smartphones, but the handset cycle still sets the near-term pace of growth.