A Head-to-Head Comparison of Xiaomi and

A Head-to-Head Comparison of Xiaomi and Apple Phones: The Widening Gap in Market Share, Revenue, and Profit

 

In the global smartphone market, Apple and Xiaomi represent two distinct camps: the "high-end benchmark" and the "value-for-money pioneer." While competition between the two has never ceased, core metrics such as market share, revenue, and net profit reveal drastically different trajectories. Apple captures the lion's share of the industry's profits through a "small but premium" high-end strategy, while Xiaomi pursues growth via scale in the mid-to-low-end market. The gap between them is not just a difference in numbers, but a fundamental distinction in business models.

 

When it comes to market share, the two focus on different tracks: "volume" versus "value." In the 2024 global overall smartphone market, the gap between Apple and Xiaomi was relatively narrow. According to Counterpoint Research, Apple ranked second with a market share of around 18%, closely followed by Xiaomi at approximately 14%—a mere 4-percentage-point difference, with both in the global top tier. However, the disparity widens dramatically when focusing on the high-end market (devices priced above $600). In Q1 2025, Apple claimed 59% of the global high-end smartphone market, nearly monopolizing high-end users; Xiaomi, despite ongoing efforts in this segment, held only a 3% share—less than one-twentieth of Apple's. Even in Xiaomi's home turf, the Chinese high-end market, Apple led with a 43% share in Q1 2025. Xiaomi's 7% share, though better than its global performance, still lagged significantly behind Apple, underscoring Apple's dominance in the high-end space.

 

The contrast in revenue and net profit offers a more straightforward view of their "profit gap." In 2024, Apple's total revenue reached RMB 2.8 trillion, nearly 7.6 times Xiaomi's full-year revenue of RMB 365.9 billion. The disparity is even more striking in net profit: Apple's 2024 net profit hit RMB 840 billion, accounting for 83% of the global smartphone market's total profits—meaning for every iPhone sold, Apple captures nearly 90% of the industry's profits. By comparison, Xiaomi's 2024 net profit was RMB 23.6 billion (RMB 27.2 billion on an adjusted basis), equivalent to only about 3.3% of Apple's. The root of this gap lies in their pricing strategies: Apple's iPhone has an average selling price (ASP) of over $800, focusing on high-end premiums; Xiaomi's smartphones, centered on value-for-money, have an ASP of just $180. This price difference directly translates to a massive gap in revenue and profit scales.

 

The underlying difference in profit models is the core determinant of their development paths. Apple adopts a "hardware + services" dual-driver model, where the iPhone serves not just as a hardware product, but as an entry point to the Apple ecosystem. In 2024, Apple's services business (including the App Store, Apple Music, and iCloud) boasted a gross margin of 74% and contributed approximately 24.6% of total revenue. This "hardware attracts users, services generate profits" model allows Apple to secure stable, high-margin income beyond hardware profits. Xiaomi, by contrast, relies on a "hardware-driven + internet monetization" model. While its internet services (including advertising and game distribution) have a gross margin of 77.5%—slightly higher than Apple's services—their revenue contribution is only 10.4%, far below that of Apple's services business. More critically, Xiaomi's hardware products already have narrow profit margins, and the scale of internet service revenue cannot offset the "low profitability" of hardware, resulting in a huge overall profit gap with Apple.

 

From a data perspective, Apple and Xiaomi are not "direct competitors" but operate in different segments of the smartphone market: Apple focuses on the high-end market, building a "profit moat" through high premiums, high gross margins, and high service revenue; Xiaomi deeply cultivates the mid-to-low-end market, exchanging scale for market share and using internet services to compensate for low hardware profits. Looking ahead, if Xiaomi wants to narrow the gap with Apple, it needs to continue breaking through in the high-end market and increase product premium capabilities and service revenue contribution. Apple, meanwhile, must defend its high-end advantages while addressing challenges from brands like Xiaomi in the mid-to-high-end segment. This battle between "high-end and value-for-money" will remain a key focus of the global smartphone market.