Emir BardakçıXiaomi Group President Lu Weibing recently took to Weibo to address the increasingly fierce price competition within the home appliance sector. Rather than joining the rush to the bottom on pricing, Xiaomi is focused on sustainable growth and long-term value creation. In his remarks, Lu highlighted Xiaomi’s exceptional performance in Q2 2025, including record-breaking revenue and net profit, with particularly strong momentum in the home appliance division. While other major players are locked in a price war, Xiaomi’s air conditioner business continues to expand rapidly—shipments are expected to surpass 5.4 million units, marking over 60% year-over-year growth. This sets Xiaomi apart from traditional manufacturers who are prioritizing discounting over stability.
Record-Setting Financial Results
Xiaomi’s second-quarter results underscore the success of its growth-driven strategy. Major appliance revenue increased 66.2% year-over-year, and air conditioner shipments are projected to reach new heights. These achievements not only set new records for Xiaomi’s home appliance segment but also reinforce the company’s competitive position in the market.
Market Position and Digital Channel Strength
Recent market data highlights Xiaomi’s growing influence in the air conditioning sector. As of July 2025, Midea leads the domestic market with a 26.8% share, followed by Gree at 17.2%, and Xiaomi holding third place with 13.7%. Notably, in online sales, Xiaomi surpassed Gree for the first time and secured a 16.71% share compared to Gree’s 15.22%, while Midea remains ahead at 18.61%. This demonstrates Xiaomi’s strong digital channel execution and brand appeal among online consumers.
Strategic Focus on Sustainable Growth
Lu Weibing reiterated Xiaomi’s commitment to a distinctive market approach: focusing on durable growth rather than short-term gains. Among the top ten online air conditioning brands in the first half of 2025, Xiaomi stood out as the only brand to deliver growth in both sales volume and average price, reflecting the strength of its value proposition and customer loyalty.
Navigating Industry Dynamics
As established competitors intensify discounting, Xiaomi’s consistent expansion and gains in market share validate its emphasis on innovation and value rather than price-driven tactics. The company’s performance signals resilience and a disciplined approach to market challenges.
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