Xiaomi went from zero to the world’s third-largest smartphone maker in less than a decade. Lei Jun founded the company in 2010 with an unusual model: sell hardware at razor-thin margins and make money from software and services. That approach let Xiaomi offer phones with flagship specs at mid-range prices, disrupting established players across Asia, Europe, and emerging markets.
The product range is staggering. Beyond smartphones, Xiaomi sells electric scooters, air purifiers, robot vacuums, smart home sensors, fitness bands, laptops, TVs, and hundreds of other connected devices. Their IoT platform connects over 700 million devices worldwide, creating one of the largest smart home ecosystems outside of Amazon and Google.
Xiaomi’s MIUI (now HyperOS) software layer runs on all their devices and creates a cohesive experience. A Xiaomi phone, watch, TV, and air purifier can all communicate with each other seamlessly. This ecosystem stickiness is strategic — once you have three or four Xiaomi devices, switching away becomes inconvenient.
The company entered the electric vehicle market in 2024 with the SU7 sedan, which received strong reviews and outsold early projections. Xiaomi’s manufacturing expertise and massive supply chain let them price the SU7 competitively against established EV makers. Revenue exceeded $50 billion in 2023, with smartphones accounting for about 60% of sales. Xiaomi’s still not very profitable per device, but the sheer volume and ecosystem play make the math work.
