Xiaomi 18 Pro starts at 5,999 yuan, 1,000 yuan more than predecessor

By华夏 Times Reporter Lu Xiao, Beijing

As the memory super cycle intensifies, smartphone makers continue to launch new devices, but their focus is increasingly shifting beyond phones.

On September 23, Xiaomi unveiled its Mi 18 Pro series, alongside new products in tablets, wearables, home appliances, and other categories. This September also saw the debut of Xiaomi's automotive lineup.

Price Hikes of 1,000 Yuan

Under sustained cost pressure, smartphone pricing has become a key market concern.

According to Huaxia Times reporting, the Mi 18 Pro starts at 5,999 yuan, 1,000 yuan higher than the Mi 17 Pro. The Mi 18 Pro Max starts at 6,999 yuan, also up 1,000 yuan from its predecessor. The transparent edition (1TB) of these two models starts at 9,999 yuan and 10,999 yuan respectively, marking the return of Xiaomi's transparent design after six years.

The price increases stem from a broad rise in core component costs.

• SoC chips: The Mi 18 Pro series debuts chips manufactured by TSMC.
• Memory: Continued price increases in storage remain a major cost burden. TrendForce estimates mobile DRAM contract prices will rise 8%–13% quarter-on-quarter in Q3, with a narrower increase in Q4. Xiaomi Group Partner and President Lu Weibing noted at the Q2 earnings call that while price growth is slowing, memory costs remain at historically high levels.
• AI: Increasing investment in AI is also driving up prices. The Mi 18 Pro series integrates Super Xiao Ai 2.0, powered by Xiaomi's MiMo large model. Lu Weibing stated on September 23: "From system software to chip hardware, from imaging to large-model applications, the Mi 18 Pro series marks the beginning of Xiaomi's comprehensive AI transformation of smartphones."

Shrinking Smartphone Market

While new phones carry higher prices, the overall market has contracted significantly. IDC data shows global Q2 smartphone shipments totaled 277.5 million units, down 6.7% year-on-year. Among the top five vendors, only Samsung and Apple saw growth.

Xiaomi's Q2 financial report reveals phone revenue of 42.1 billion yuan, down 7.5% year-on-year, with 31.2 million units shipped (a 26.5% decline). Gross margin fell 3 percentage points to 8.5%.

Industry insiders suggest the 1,000 yuan price hike is a passive response to cost pressures, while also creating room for future standard edition pricing. Omdia Chief Analyst Li Zegang told Huaxia Times that handset makers will face greater production pressure in the second half of the year, making conditions even tougher.

Growth Beyond Phones

With core business under pressure, smartphone makers are looking beyond handsets. On September 7, Xiaomi's Pengcheng series electric vehicle was unveiled. On September 23, the company also launched the Mi Pad 9 series, Mi Band 11, Mi Watch S5, and multiple home appliances.

In Q2, Xiaomi's IoT and lifestyle products revenue reached 31.3 billion yuan, accounting for nearly 30% of total revenue. Its gross margin of 20.1% was 11.6 percentage points higher than the phone business.

Independent telecom analyst Fu Liang told Huaxia Times that major smartphone makers, including Apple, share a common strategic direction: phones alone cannot deliver sufficient returns, so expansion is essential. "With AI support, they start with phones and move to tablets, TVs, and computers, then radiate outward to AI-powered cars, glasses, and watches—though each chooses different entry points."

Wearables and Smart Home

Watches and bands, as the longest-worn wearable devices, have become a key entry point. Driven by health needs, they serve as critical gateways for health strategies. IDC data shows global wrist-worn device shipments reached 48.01 million units in Q2 2026, down 4.3% year-on-year, with Xiaomi ranking second globally with a 17.7% share.

Home appliances are another focus area. On September 23, Xiaomi unveiled TVs, range hoods, smart locks, washing machines, coffee machines, and other tech home appliances.

However, China's home appliance market is in a period of stock competition. According to Aowei Cloud data, the domestic market faced pressure in 2026, with first-half retail sales of 425 billion yuan, down 9.9% year-on-year.

Overseas Expansion

Overseas expansion has become a key priority for appliance makers. Multiple industry executives told Huaxia Times that weak domestic demand means growth relies on international markets. Xiaomi's Q2 report noted that overseas IoT and lifestyle product revenue grew rapidly year-on-year, driven by channel expansion and category additions. Overseas tablet shipments and revenue both hit record highs.

Lu Weibing said at the Q2 earnings call that Xiaomi's IoT business grew over 20% year-on-year in Q2, and overseas IoT revenue reached a record high in the first half. However, he noted that large home appliances still account for a very small share overseas.

Regarding overseas expansion, Lu added that Xiaomi has two major categories: large appliances (currently in pilot phase, moving toward full-scale global rollout) and automotive. He revealed that Xiaomi has recently conducted automotive market research in multiple countries and plans further research in Europe.

A New Triangle: Phones, IoT, and Automotive

With phones holding the fort, IoT filling the gap, and automotive scaling up, Xiaomi's "new triangle" is rebalancing its strategic priorities.

(Source: Huaxia Times)