Chinese electronics giant rides EV and IoT boom

Chinese tech giant Xiaomi has reported that its net profit more than doubled, powered by stronger sales of connected devices and its push into electric vehicles. The company told investors that its “smart ecosystem” strategy is starting to deliver, as smart TVs, wearables and home gadgets feed into a growing base of loyal users. Its fledgling EV business, once seen as an expensive gamble, is now described as a key growth driver, with early models attracting strong interest in China. Smartphone sales, while more mature, have stabilised and remain the backbone of Xiaomi’s brand across Asia.

For South Asian markets, where Xiaomi phones are widely used, the earnings signal that the brand is likely to keep investing in mid-range devices rather than retreating to its home market. Analysts say the company’s ability to generate cash from EVs and higher-end gadgets may allow it to keep budget phones aggressively priced. That matters for importers and retailers from Dhaka to Delhi, who rely on steady supply and predictable pricing to manage thin margins. Xiaomi’s management also highlighted software and AI features as future differentiators, hinting at deeper integration between phones, TVs, cars and the cloud.

What it means for Asian consumers and rivals

Xiaomi’s strong quarter adds pressure on regional rivals still trying to recover from the last smartphone downturn. Brands in India and Southeast Asia face a customer base that expects long battery life, good cameras and reliable software updates at modest prices. If Xiaomi uses its EV and IoT profits to underwrite discounts in core markets, the competitive bar will rise further. That could squeeze smaller brands and speed up consolidation in low- and mid-tier segments.

For consumers, the upside is more capable devices at familiar price points, plus tighter integration between home, car and handset. The risk is that ecosystems become more closed, nudging users to stick to one brand for everything from earbuds to air purifiers. In South Asia, where many users upgrade in small steps instead of big flagship leaps, a steady pipeline of slightly better, slightly smarter Xiaomi devices could lock in market share over the rest of the decade. Investors, meanwhile, will be watching whether the EV unit can keep ramping production without eroding margins—and whether regulators in key markets raise new questions about data, privacy or subsidy support.