3 Minutes
Xiaomi has quietly reduced the number of smartphones it launches each year, shifting from a volume-driven strategy to one that prizes software longevity, global consistency, and deeper ecosystem ties. This change reshapes how the company approaches phones, services, and cars.
Fewer models, clearer priorities
Once famous for flooding markets with dozens of variants across multiple sub-brands, Xiaomi is narrowing its product slate. The move comes as smartphones are no longer the companys primary growth engine. In Q2 2025 Xiaomi reported a 2% year-on-year decline in smartphone revenue even while its AIoT segment surged 44.7% to 38.7 billion yuan (about $5.4 billion) and its electric vehicle business topped 20 billion yuan (roughly $2.8 billion) in quarterly sales.
Software first: HyperOS and longer update windows
Central to Xiaomi's pivot is a software-centric approach. Flagship and key models like the Xiaomi 15 and the Redmi Note 14 series now get four OS upgrades and six years of security patches, matching the update promises of Samsung and Apple. To deliver that reliably across regions, Xiaomi is migrating from MIUI to HyperOS, a unified global platform designed to reduce fragmented builds and speed up updates.
Lessons from India reshaped product thinking
China's strategy shift was informed by hard lessons abroad. In early 2025 Xiaomi's shipments in India fell 42% year-on-year, dropping the company from market leader to sixth place. Analysts point to product overlap between Redmi, Poco, and Xiaomi as a source of consumer confusion, plus inconsistent software builds across regions that delayed feature rollouts and support. In response, Xiaomi has clarified brand roles: Redmi for mass-market value, Xiaomi for mid-to-premium, Poco for performance, and Civi for design-focused phones.
Less niche hardware, more ecosystem engineering
Xiaomi is also stepping back from some specialized hardware bets. There will be no Mix Fold 5 this year, and the Civi 5 Pro remains a China-exclusive model. Foldables demand heavy R&D for a still-small market share, so Xiaomi prefers to reallocate those resources toward strategic areas such as phone-to-car integration, smart cockpit systems, and its Human-Car-Home vision that treats the smartphone as a central node connecting EVs, homes, and AI services.
Four pillars of the new strategy
- Extended software lifecycles to keep devices relevant longer
- A unified global software platform in HyperOS to cut fragmentation
- Durable, high-quality hardware rather than endless SKUs
- Deeper integration across cars, homes, and AIoT devices
The net effect is fewer new phones each year, but higher consistency, longer support, and a closer tie between devices and Xiaomi's growing AIoT and EV businesses. For consumers, that could mean buying one phone that stays current longer and works more seamlessly with the wider Xiaomi ecosystem.
Source: gizmochina
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