This topic is Xiaomi’s Q2 report: Phone sales decline despite rising average selling price! It appeared on Tech-Wala (Tech Without Borders)

Xiaomi achieved revenues of 108.9 billion Chinese yuan (16.2 billion dollars) during the second quarter of 2026, with a gross profit margin of 19.8% and net profit of 6.2 billion yuan (919 million dollars)

The bulk of revenues came from smartphones and AIoT devices, which generated 84 billion yuan at a gross profit margin of 20%. Of this amount, smartphones alone accounted for 42.1 billion yuan, while IoT and lifestyle products generated 31.3 billion yuan.

Meanwhile, the average selling price of Xiaomi phones rose to a record high of 1,351 yuan (about $200), and premium smartphones accounted for 32.1% of the company’s total sales in China.

Despite rising average prices, shipments of smartphones declined significantly. Xiaomi shipped around 31.2 million phones globally during the second quarter, down 26.3% compared to the same period last year, while its market share was 11.5%, maintaining its position as the third largest global smartphone vendor for the 24th consecutive quarter.

In China, shipments fell to 8.4 million phones, compared to 11.5 million in the second quarter of 2025, resulting in a market share decline from 16.8% to 14.2%.

Meanwhile, Xiaomi continued to invest heavily in research and development, spending 18.2 billion yuan during the first half of the year, and expects total expenditure to exceed 40 billion yuan by 2026. 47.2% of the company's employees work in R&D.

In terms of tablets, Xiaomi ranked fourth globally and in China, despite a 6.8% decline in shipments to 2.8 million units during the second quarter. The company also maintained its second-place position globally and in China within the wearable devices and TWS headphones market.

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