In a major setback for Sydney-based distributor Panmi — who were dumped last year by Segway and Xiaomi — the Chinese tech giant has confirmed it will establish its own subsidiary in Australia.

Xiaomi, regarded as one of the world’s fastest-growing and most innovative technology companies, is setting up operations in Sydney. The move is expected to shake up the local smartphone, appliance, and consumer tech markets.

The company will debut its flagship Xiaomi 15T Series smartphones — the first 5G models in Australia co-engineered with renowned camera maker Leica. Alongside the phones, Xiaomi will launch a broad ecosystem of devices including smartwatches, fitness trackers, tablets, robot vacuums, and wearables.

Founded in 2010 by Lei Jun and seven partners, and headquartered in Beijing, Xiaomi has grown into one of the world’s top smartphone makers.

ChannelNews understands that JB Hi-Fi will range several of Xiaomi’s new products, a move that could threaten the dominance of Android competitors Samsung, Oppo, and Motorola, given Xiaomi’s global popularity and competitive pricing.

The brand has already launched its online store Mi.com/au, with pre-orders open now and a full site launch scheduled for 10 October.

Among the first wave of products arriving in Australia are the REDMI Pad 2, REDMI Watch 5 Active, Xiaomi Robot Vacuum X20+, HyperCharge Power Bank, and the Xiaomi Smart Band 10, a best-seller across Asia. All will be offered at promotional launch prices, with additional online deals for local consumers.

The timing of Xiaomi’s arrival — just weeks before Black Friday and the peak Christmas trading period — is expected to put pressure on both global brands and local house-brand distributors in the small appliance market.

Xiaomi executives said: “For years Australians have shown keen interest in Xiaomi products. We are excited to bring our full ecosystem to the market at amazing prices.”

The company’s latest financials highlight its momentum. In 2025, Xiaomi’s AIoT and smartphone divisions delivered a gross profit margin of 21.6%, up 0.5% year-on-year. In Q2 2025 alone, smartphone revenue reached A$9.72 billion, with a gross margin of 11.5%. Global smartphone shipments climbed to 42.4 million units, up 0.6% year-on-year.

More to follow.