Xiaomi phone shipments sink 26% as prices hit record high

The company's smartphones got pricier in Q2, but that wasn't enough to stop a steep drop in global shipments and market share.

File photo: Xiaomi 17 Ultra

Fewer units, higher price tag

Xiaomi's smartphone shipments plunged 26.3 percent year over year in the second quarter, even as the average price of its phones hit a record high.

According to the company's Q2 2026 earnings report, Xiaomi shipped 31.2 million smartphones globally in the quarter, down from 42.4 million a year earlier. Its global market share slid to 11.5 percent, from 14.7 percent in Q2 2025.

The decline was steeper than rivals'. Samsung's shipments rose 5.3 percent to 60.5 million units, while Apple's jumped 23.1 percent to 55.1 million. OPPO and vivo also shrank, falling 17.4 percent and 18.5 percent, respectively.

Xiaomi still ranked third worldwide, a position it has held for 24 consecutive quarters, per Omdia data cited in the report.

See also: POCO's significant price hike shows impact of global memory shortage—some models up PHP 11K

Meanwhile, Xiaomi's smartphone average selling price climbed to RMB 1,351, or around PHP 12,389, up 25.9 percent year-over-year and a record for the company.

Stronger premium sales drove the gains. Phones priced at RMB 3,000, or around PHP 27,510, and above made up 32.1 percent of units sold in the Chinese Mainland, also a record, up 4.5 percentage points from a year earlier.

Image from Xiaomi

The mix shift didn't fully offset the volume drop. Smartphone segment revenue fell to RMB42.1 billion, or around PHP 386.1 billion, down from RMB 45.5 billion, or around PHP 417.2 billion, in Q2 2025.

Revenue was also down from RMB 44.3 billion, or around PHP 406.2 billion, in the prior quarter. Gross margin on smartphones was 8.5 percent, which the company attributed to a substantial rise in the price of key components.

In mainland China, Xiaomi sold 8.4 million smartphones, down from 11.5 million a year earlier. Its domestic market share slipped to 14.2 percent from 16.8 percent.

The smartphone weakness came within an otherwise mixed quarter for Xiaomi. Group revenue reached RMB 108.9 billion, or around PHP 998.6 billion.

The smartphone x AIoT segment contributed RMB 84.0 billion, or around PHP 770.3 billion, at a 20.0 percent gross margin. The Smart EV, AI and Other New Initiatives segment posted RMB24.9 billion, or around PHP228.3 billion, in revenue, up 17.1 percent year-over-year.

Xiaomi delivered 104,199 electric vehicles in the quarter, a 28.2 percent increase from the prior year. Group adjusted net profit was RMB 6.2 billion, or around PHP 56.9 billion, with an adjusted net profit margin of 5.7 percent.

Via: GSMArena