Xiaomi reported strong financial results for the second quarter of 2026, recording revenue of $16.2 billion as the company continued to expand its smartphone business and strengthen its position in the premium market.
The company reported a gross profit margin of 19.8% during the quarter, while adjusted net profit reached $919 million. The results highlight continued growth across Xiaomi’s business and increasing consumer demand for higher-priced smartphones.
One of the most notable developments was the increase in Xiaomi’s smartphone Average Selling Price (ASP). The figure reached a record $200 during the second quarter, indicating that consumers are increasingly purchasing more expensive models from the company.
Xiaomi’s rising smartphone ASP reflects the company’s efforts to move further into the premium smartphone segment. Higher-priced devices typically offer more advanced cameras, processors, displays and other features compared with entry-level and mid-range models.
The company also saw premium smartphones account for a larger portion of its sales in Mainland China. Premium models represented 32.1% of all Xiaomi smartphones sold in the market during the quarter.
The growing share of premium devices is significant for Xiaomi because higher-end smartphones can generate stronger revenue and improve overall profitability. The company has been working to compete more directly with established premium smartphone brands in major markets.
The record $200 average selling price suggests that Xiaomi’s product mix is changing as more customers choose higher-value devices. It also indicates that the company’s premium strategy is gaining traction in at least some of its key markets.
Xiaomi’s $16.2 billion quarterly revenue further demonstrates the scale of its global business. Alongside smartphones, the company operates across several technology categories, giving it multiple sources of revenue and allowing it to build a broader consumer ecosystem.
The 19.8% gross profit margin and $919 million adjusted net profit also provide insight into the company’s financial performance during the quarter. Profitability remains an important measure as Xiaomi invests in product development, technology and expansion.
For the smartphone industry, Xiaomi’s results offer another indication of changing consumer demand. While affordable smartphones remain important in many markets, manufacturers are increasingly seeking growth through premium devices and higher-value products.
The trend could also influence Xiaomi’s strategy in international markets. As the company strengthens its premium portfolio, it may seek to increase the average value of devices sold outside Mainland China as well.
For consumers, Xiaomi’s growing focus on premium smartphones means its product lineup is likely to continue offering more advanced devices at higher price points. The company’s record smartphone ASP shows that its average customer spending has increased.
The second-quarter results also demonstrate the importance of premium smartphone sales to Xiaomi’s broader growth strategy. With premium models accounting for 32.1% of smartphone sales in Mainland China, the segment has become an increasingly important part of the company’s business.
Xiaomi’s latest financial performance will likely keep the company in focus as competition in the global smartphone market intensifies. Its ability to maintain revenue growth while improving its premium product mix will be important for its future performance.
