Xiaomi reports lower smartphone shipments in Q1 2026, higher average selling price
Xiaomi’s Q1 2026: Navigating Supply Hurdles and the Pivot to Premium
It’s been a challenging start to 2026 for Xiaomi. Like many in the industry, the tech giant has been grappling with the fallout of skyrocketing component prices, and the impact is finally showing up in the shipment data. During the first three months of the year, Xiaomi moved 33.8 million smartphones—a 19.2% dip compared to the same period in 2025.
While that sounds like a steep slide (and it was the largest drop among the global ‘Top 5’), context is everything. Despite the turbulence, Xiaomi managed to defend its bronze medal. With a comfortable lead over Oppo and Vivo, the company remains the world’s third-largest smartphone maker, even as Apple and Samsung saw modest year-over-year growth of 9.9% and 8.0%, respectively.
Global Footprint and Regional Strengths
Xiaomi’s resilience is largely thanks to its massive international reach. Even in a down quarter, the brand remains a powerhouse across diverse markets:
- Latin America: Holding strong at #2.
- Europe, Africa, & Southeast Asia: Firmly in the #3 spot.
- China: Occupying #3 with a 16% market share.
- India: Currently ranked #4.
The Silver Lining: Average Selling Prices Are Climbing
If there is a bright spot in the smartphone report, it’s that Xiaomi’s strategy to go ‘premium’ seems to be working. The Average Selling Price (ASP) has climbed to CNY 1,310, marking an 8% increase from last year. This suggests that while they might be selling fewer units, the units they are selling are higher-value devices. It’s a necessary shift as the company tries to offset those rising manufacturing costs.
Wearables Lead the Way, While Tablets Face a Shakeup
Xiaomi’s ecosystem beyond the smartphone continues to be a mixed bag of massive wins and new competition. Their wearables department is still crushing it; they currently sit as the world’s second-largest brand for TWS earbuds and third for smart bands. However, the tablet market proved more volatile. Xiaomi slipped to #5 globally, losing ground to Huawei and Lenovo, who saw significant growth spurts of 28.6% and 20%, respectively.
The EV Revolution: YU7 Takes the Lead
Perhaps the most exciting part of Xiaomi’s current portfolio isn’t something you can fit in your pocket. The company’s venture into Electric Vehicles is moving at breakneck speed. In Q1, Xiaomi shipped 80,856 EVs. Interestingly, the newer Xiaomi YU7 series has already surged past the SU7 to become the company’s most popular vehicle line.
The Bottom Line
From a purely financial perspective, the quarter was a bit leaner than last year. Xiaomi reported a profit of CNY 6.1 billion on revenue of CNY 99.1 billion. That’s a significant 43.1% drop in profit compared to the CNY 10.7 billion they pocketed in Q1 2025. It’s clear that the combination of lower phone shipments and the massive R&D investment required for their EV expansion is tightening the margins. However, with a diversifying product line and a growing footprint in the automotive world, Xiaomi is clearly playing the long game.