Huawei vs Xiaomi: Revenue, Profit and Business Model
Huawei reported ~$122.4B of revenue in FY2025 and ~$9.5B of net income. Xiaomi reported ~$63.6B of revenue in FY2025 and ~$5.8B of net income.
Latest financial snapshot
Financial summary
Huawei
Huawei's revenue collapsed from ~$124 billion (CNY 891.4 billion) in 2020 to ~$88.5 billion (CNY 636.8 billion) in 2021 as U.S. restrictions cut off advanced chips and Google services for its phones. It then climbed back: ~$89.3 billion (CNY 642.3 billion) in 2022, ~$97.9 billion (CNY 704.2 billion) in 2023, ~$120 billion (CNY 862.1 billion) in 2024 (+22.4%), and ~$122 billion (CNY 880.9 billion) in 2025 (+2.2%). Net profit was ~$12.1 billion (CNY 87.0 billion) in 2023, fell to ~$8.7 billion (CNY 62.6 billion) in 2024 as investment rose, and recovered to ~$9.45 billion (CNY 68.0 billion) in 2025. Margins came under pressure again in the first half of 2026: revenue rose 9.6% to ~$65 billion (CNY 467.8 billion), but net profit fell 36% to ~$3.31 billion (CNY 23.8 billion) on higher costs and R&D. Huawei publishes audited annual results and issues bonds, but it has no share price or public market capitalization.
Xiaomi
FY2025 was Xiaomi's strongest year: revenue rose 25.0% to ~$63.6B (RMB457.3B), profit attributable to owners was ~$5.78B (RMB41.6B), and adjusted net profit rose 43.8% to ~$5.45B (RMB39.2B). The Smart EV, AI and other new initiatives segment more than tripled to ~$14.7B (RMB106.1B) on 411,082 vehicle deliveries and posted its first full-year operating profit. 2026 has been weaker. Q1 revenue was ~$13.8B (RMB99.1B) (down 10.9%) with adjusted net profit of ~$848M (RMB6.1B) (down 43.1%). Q2 revenue was ~$15.1B (RMB108.9B) (down 6.1%) with adjusted net profit of ~$862M (RMB6.2B) (down 42.6%) and a 19.8% gross margin. In Q2 the EV segment had ~$3.46B (RMB24.9B) of revenue and an operating loss of about $361M (RMB2.6B).
Revenue and profit by year
Where the revenue comes from
Huawei
- ICT Infrastructure
Largest segment
Carrier network equipment, optical transmission, enterprise networking, data-center infrastructure, and communications software sold to telecom operators, governments, and enterprises.
- Consumer Devices
Major segment
Smartphones, tablets, PCs, wearables, audio devices, HarmonyOS ecosystem services, and smart-device software sold mainly through consumer channels.
- Digital Power
Growth segment
Smart photovoltaic inverters, energy-storage systems, EV charging, data-center power, and electrification products for energy and infrastructure customers.
- Cloud and Computing
Strategic platform
Huawei Cloud, Pangu AI models, Ascend computing infrastructure, enterprise software, and government/industry digital-transformation services.
Xiaomi
- Smartphones
40.8% (FY2025)
~$25.9B (RMB186.4B) from Xiaomi, Redmi and POCO phones.
- IoT, Lifestyle Products and Internet Services
36.0% (FY2025)
Remainder of the Smartphone x AIoT segment, including appliances, TVs, wearables, advertising and games.
- Smart EV, AI and Other New Initiatives
23.2% (FY2025)
~$14.7B (RMB106.1B), mostly from SU7 and YU7 vehicle sales.
Business model and strategy
Huawei
How it makes money
Huawei makes money by selling network equipment, devices, and digital infrastructure, plus software, services, and patent licences. In 2025 its ICT infrastructure business, which sells 5G radio, core network, optical, data-communication, and enterprise products to carriers, governments, and companies, earned ~$52.1 billion (CNY 375 billion).
Growth strategy
Huawei's growth strategy has three parts: build domestic replacements for restricted technology (Kirin and Ascend chips, HarmonyOS, openEuler, and in-house HBM for AI accelerators), expand newer businesses such as intelligent automotive solutions and Digital Power, and keep selling ICT infrastructure in China, the Middle East, Africa, Latin America, and Southeast Asia, where it is not excluded from 5G networks.
Competitive advantage
Huawei's advantage is scale in R&D and breadth of portfolio. It reinvested ~$26.7 billion (CNY 192.3 billion) in R&D in 2025 and ~$192 billion (CNY 1.382 trillion) over the past decade, and it can sell an operator everything from radio and core networks to optical transport, data-center power, and cloud.
Xiaomi
How it makes money
Xiaomi sells hardware at relatively thin margins and earns higher margins from internet services delivered through its installed base of devices, including advertising, app distribution and games. Smartphones were the largest single product line in FY2025 at ~$25.9B (RMB186.4B) of revenue. IoT products extend the ecosystem into homes, and many of them are made by ecosystem partner companies Xiaomi has invested in.
Growth strategy
Xiaomi's stated strategy is the Human x Car x Home ecosystem: sell more premium smartphones, add large appliances and other IoT categories, scale the car lineup, and invest in its own AI models and chips, such as the MiMo models and the XRING O1 processor.
Competitive advantage
Xiaomi's advantages are scale in smartphones (top three globally by shipments), a very wide range of connected products under one brand and one operating system, a large device base it can monetize through services, and a fast-growing car business that buyers can connect to the same ecosystem.
Questions about Huawei vs Xiaomi
Which company has higher revenue — Huawei Technologies Co., Ltd. or Xiaomi Corp.?
Huawei Technologies Co., Ltd. reported ~$122.4B (FY2025), while Xiaomi Corp. reported ~$63.6B (FY2025). By last reported revenue, Huawei Technologies Co., Ltd. is the larger business, with Xiaomi Corp. reporting a smaller revenue base.
What is the market cap of Huawei Technologies Co., Ltd. vs Xiaomi Corp.?
Xiaomi Corp. has a market capitalisation of $83.0B. A public market cap figure for Huawei Technologies Co., Ltd. was not available (it may be privately held).
Which is more financially efficient — Huawei Technologies Co., Ltd. or Xiaomi Corp.?
Huawei Technologies Co., Ltd. generates $575k / employee in revenue per employee, while Xiaomi Corp. generates $1.12M / employee. Xiaomi Corp. shows higher revenue efficiency per headcount, though this reflects business model differences — capital-light software companies routinely outperform labour-intensive manufacturers on this metric.
How do Huawei Technologies Co., Ltd. and Xiaomi Corp. make money?
Huawei Technologies Co., Ltd. and Xiaomi Corp. generate revenue in fundamentally different ways. Huawei Technologies Co., Ltd.: Huawei makes money by selling network equipment, devices, and digital infrastructure, plus software, services, and patent licences. Xiaomi Corp.: Xiaomi sells hardware at relatively thin margins and earns higher margins from internet services delivered through its installed base of devices, including advertising, app distribution and games.
Is Huawei Technologies Co., Ltd. bigger than Xiaomi Corp.?
By last reported revenue, Huawei Technologies Co., Ltd. (~$122.4B (FY2025)) is the larger company compared to Xiaomi Corp. (~$63.6B (FY2025)). Revenue scale is one dimension of size — market capitalisation, employee count, and geographic reach are also relevant depending on the context.
Figures come from each company's filings and the sources linked beside them. Amounts reported in another currency are shown in US dollars at an approximate rate and marked with ~. Back to the Huawei vs Xiaomi overview