Xiaomi’s revenue growth is accelerating thanks to the new cycle
Xiaomi Corporation, which operates in the fields of consumer electronics, smartphones and smart home (IoT) products, announced its unaudited consolidated results for the second quarter of 2024.
Xiaomi posted double-digit year-on-year revenue growth for the third consecutive year in Q2 2024, with revenue reaching 88.9 billion yuan, up 32% year-on-year. Adjusted net profit reached 6.2 billion yuan, an increase of 20.1% year-on-year, indicating strong growth. The overall gross profit margin remained at a high level of 20.7%.
Xiaomi’s three main business areas – smartphones, smart home (IoT) and consumer electronics products, and Internet services – beat market expectations with sales of 46.5 billion yuan, 26.8 billion yuan and 8.3 billion yuan, respectively. Revenue from the intelligent electric vehicle business and other new initiatives reached 6.4 billion yuan. The group’s overall results beat consensus expectations, marking a new phase of strong growth.
In the 2nd quarter, Xiaomi’s cash flow reached 141 billion yuan, which is a key foundation for the continuous development of both core and new businesses and supports further rapid growth. The driving force is sustained investment in important technologies. Artificial intelligence within Xiaomi has greatly strengthened business development, expanded the capabilities and user experience in smartphones and smart electric vehicles, and at the same time increased the efficiency of operations in the Xiaomi Smart Factory. The progress of Xiaomi’s “human x car x household” intelligent ecosystem is expected to further strengthen the sustainability of future growth.
Thanks to its global expansion, Xiaomi is leading in growth among the five largest smartphone brands
In the 2nd quarter, global shipments of Xiaomi smartphones reached 42.2 million units, representing a year-on-year increase of 28.1%. According to Canalys, Xiaomi has maintained its position among the top three smartphone brands in the world for 16 consecutive quarters with a market share of 14.6%. Xiaomi is the fastest growing smartphone brand among the top five in terms of shipments as well.
The smartphone group saw strong growth in Q2, with sales reaching 46.5 billion yuan, up 27.1% year-on-year. According to data from Canalys, the Xiaomi Group ranked among the top three smartphone manufacturers in 58 countries and regions of the world in the 2nd quarter of 2024. In another 70 countries and regions, it ranked among the top five manufacturers. This growth underscores Xiaomi’s increasing influence in international markets, with expansion in Latin America, Southeast Asia, the Middle East and Africa accelerating. In Latin America, Xiaomi’s smartphone shipments ranked 2nd highest for the first time.
Business revenues from IoT have grown rapidly; deliveries of air conditioners in the 2nd quarter jumped by more than 40%
Xiaomi’s smart home and consumer electronics products maintained an upward trajectory in Q2, posting record sales of 26.8 billion yuan, up 20.3% year-on-year. Smart home appliances also improved, with sales growing by 38.7%.
According to Canalys, global tablet shipments doubled year-on-year in Q2, making Xiaomi the fastest-growing tablet brand among the top five manufacturers. Xiaomi’s wearables shipments ranked 3rd globally (2nd in China) and wireless earphones also ranked 3rd globally (1st in China).
In the 2nd quarter, shipments of Xiaomi air conditioners exceeded 3.3 million units, representing a year-on-year increase of more than 40%. During this period, refrigerators in particular recorded significant growth with 600,000 units delivered, as well as washing machines, which recorded 400,000 units delivered.
Strong growth in Internet services with global and Chinese active users up more than 10%
During this period, Internet services maintained rapid growth, with revenue increasing 11% to a record 8.3 billion yuan. As Xiaomi continues to deepen and expand its global partner network, foreign Internet service revenue increased 32.9% year-on-year to 2.7 billion yuan in the second quarter, increasing its share of total Internet service revenue to 32. 1%.
The Internet user base continued to expand, and the number of monthly active users worldwide and in mainland China reached record highs. In June 2024, global users reached 675.8 million, representing a year-on-year increase of 11.5%. Their number in mainland China reached 164.4 million, representing a year-on-year increase of 10.1%.
The group’s growth with smart electric cars exceeded forecasts and delivered more than 27,000 vehicles in the 2nd quarter
Since the introduction of the first smart electric car Xiaomi SU7, market results have significantly exceeded expectations. In the second quarter, revenue from smart electric cars and other new initiatives reached 6.4 billion yuan. The group is constantly increasing the production and deliveries of the Xiaomi SU7 electric car. Deliveries totaled 27,307 vehicles, with monthly deliveries exceeding 10,000 units two months in a row. Moreover, the increase in production capacity exceeds the production capacity of competitors.
Since June, the Xiaomi EV Factory has started a two-shift operation with the goal of delivering 100,000 vehicles in advance by November. The company will also aim to deliver 120,000 Xiaomi SU7 series vehicles by 2024. As of June 30, 2024, the company has opened 87 smart electric car stores in mainland China,
Sufficient cash across the group ensures that Xiaomi can continue to focus on technology and product development in the field of smart electric vehicles in the face of intense market competition.
In July 2024, Xiaomi presented a prototype of the SU7 Ultra electric vehicle and announced that it plans to achieve an excellent time with it on the Nordschleife racing circuit within the Nürburgring complex in October. The goal is to become the fastest four-door electric vehicle on the circuit in the next decade.
Xiaomi’s “human x car x household” intelligent ecosystem supports the growth of the premium market
The group continued to introduce AI technologies to improve its human x car x home ecosystem. It increased investment in research and development in the second quarter, with spending reaching 5.5 billion yuan, up 20.7% year-on-year.
Artificial intelligence technology from Xiaomi has achieved breakthrough results in several areas, but especially in the sector of intelligent electric vehicles. This technology has wide applications and offers robust technical support for functions such as autopilot, automatic parking and voice interaction through the Xiaomi AI assistant.
In terms of smartphones, Xiaomi has improved the AI capabilities of multi-modal recognition and understanding, bringing users a number of features including document analysis and artificial intelligence video creation. These innovations support Xiaomi’s growth in the premium market.
According to third-party data, in the second quarter of 2024, Xiaomi’s premium smartphones priced at or above 3,000 yuan accounted for 22.1% of total shipments in mainland China, up 2% year-on-year. Smartphone market shares in the 3,000-4,000 Yuan, 4,000-5,000 Yuan, and 5,000-6,000 Yuan price categories were 16.8%, 20.1%, and 8.9%, respectively, all recording year-on-year growth. increase.
On July 19, Xiaomi launched its next-generation flagship foldable smartphone Xiaomi MIX Fold 4 in China, along with the first compact foldable Xiaomi MIX Flip. The performance of these two models significantly exceeded expectations, further strengthening Xiaomi’s reputation in the premium market. The Xiaomi MIX Flip has received considerable acclaim for its unique folding design and innovative 4.01-inch outdoor display with offline flip function.
Source: www.nextech.sk
