Xiaomi’s Financial Results for Q2 2024

Xiaomi announced its financial results for the second quarter of 2024, marking the third consecutive quarter of double-digit growth with a year-on-year increase of 32%, achieving a revenue of RMB 88.9 billion. The adjusted net profit amounted to RMB 6.2 billion (up 20.1% year-on-year), and the gross profit margin remained high at 20.7%. These results indicate another phase of the company’s growth.

Revenue from the brand’s three main business areas—smartphones, IoT (Internet of Things) and lifestyle products, and internet services—exceeded market expectations, bringing in RMB 46.5 billion, RMB 26.8 billion, and RMB 8.3 billion, respectively. Additionally, the financial results included areas related to intelligent electric vehicles and the company’s new initiatives, which generated a total revenue of RMB 6.4 billion.

Global Expansion Accelerates: Xiaomi Leads Growth Among Top Five Smartphone Brands

In the second quarter of 2024, Xiaomi’s global smartphone sales reached 42.2 million units, representing a significant 28.1% increase compared to 2023. According to Canalys analysis, the company has maintained a strong position among the top three smartphone brands globally for 16 consecutive quarters, with a global market share of 14.6%. Xiaomi is the fastest-growing entity in terms of product shipments in this segment.

The smartphone category in Q2 2024 recorded revenues of RMB 46.5 billion, an increase of 27.1% compared to the previous year. According to Canalys data, Xiaomi’s smartphone shipments in the last quarter ranked in the top three in 58 countries and in the top five in 70 countries and regions worldwide. This growth highlights Xiaomi’s increasing influence in international markets, particularly in rapidly developing regions such as Latin America (where Xiaomi’s smartphone shipments ranked in the top two for the first time), Southeast Asia, the Middle East, and Africa.

IoT Revenue Soars: Air Conditioner Shipments Grow by Over 40% in Q2 2024

The IoT and lifestyle products division maintained its growth trend, recording a record revenue of RMB 26.8 billion (a 20.3% year-on-year increase) for Xiaomi. The segment of intelligent devices, with a revenue growth of 38.7% year-on-year, also boasted strong results.

The company is also experiencing significant growth in the tablet market. Canalys reports that shipments doubled compared to the previous year, making Xiaomi the fastest-growing brand in terms of shipments in this category as well. Furthermore, wearable devices (smartwatches, bands, headphones, etc.) ranked third globally and second in China in terms of shipments, with wireless headphones ranking third globally and first in China.

In the second quarter, Xiaomi’s air conditioner sales exceeded 3.3 million units, marking a year-on-year growth of over 40%. During this period, Xiaomi also saw significant increases in the sales of refrigerators and washing machines, with shipments exceeding 600,000 and 400,000 units, respectively.

Solid Growth in Internet Services Business: Increase in MAU (Monthly Active Users) by 10% Globally and in China

The internet services segment continued its dynamic growth, with revenues increasing by 11% to a record level of RMB 8.3 billion. Xiaomi continues to deepen and expand its global partnership network, resulting in a year-on-year revenue increase of 32.9% to RMB 2.7 billion in the second quarter, increasing its share of total internet services revenue to 32.1%.

Growth in Electric Vehicle Business Exceeds Forecasts: Over 27,000 Cars Delivered in Q2

Since the debut of the Xiaomi SU7 series, the brand’s first intelligent electric vehicle, market results have far exceeded expectations, achieving RMB 6.4 billion in revenue from intelligent electric vehicles and new initiatives in the second quarter of 2024. The company continues to ramp up production and deliveries of the Xiaomi SU7 series, with a total of 27,307 vehicles delivered, and monthly deliveries exceeding 10,000 units for two consecutive months.

Since June 2024, the Xiaomi EV Factory has shifted to a two-shift system, intensifying production to meet the target of delivering 100,000 vehicles by November this year. The company also aims to deliver a total of 120,000 Xiaomi SU7 series vehicles by the end of 2024. As of June 30, 2024, Xiaomi had opened 87 smart electric vehicle sales centers in mainland China, responding to the continued growth in orders and providing users with a full range of professional support for the brand’s smart electric cars.

The company is steadily increasing its influence and product competitiveness in this segment, including the July unveiling of the Xiaomi SU7 Ultra prototype. The company also announced that within the next decade, it intends to make it the fastest electric vehicle. The first attempts to break the lap time record are scheduled for October 2024 at the Nürburgring Nordschleife track.

Artificial Intelligence Fully Enhances Xiaomi “Human x Car x Home” Ecosystem, Driving Premium Market Growth

In the second quarter of 2024, Xiaomi utilized artificial intelligence to enhance the “Human x Car x Home” environment, increasing R&D spending to RMB 5.5 billion, up 20.7% from the previous year. Using AI technology, Xiaomi employees made innovative breakthroughs in several areas, particularly in the electric vehicle sector, developing features such as Autopilot, automatic parking, and voice interaction via the Xiaomi AI assistant.

Xiaomi is expanding its AI assistant’s communication capabilities and has already offered consumers a range of new features, including document analysis and AI-generated video creation. These innovations form the basis for Xiaomi’s growth in the premium market.

According to data from external companies, in the second quarter of 2024, Xiaomi’s premium smartphone models priced at RMB 3,000 or higher accounted for 22.1% of the total number of smartphones sold in China, representing a 2% year-on-year increase. Market share in the price segments of RMB 3,000 to 4,000, RMB 4,000 to 5,000, and RMB 5,000 to 6,000 was 16.8%, 20.1%, and 8.9%, respectively, also recording growth compared to the previous year.

On July 19, Xiaomi unveiled its next-generation flagship devices, the Xiaomi MIX Fold 4 and Xiaomi MIX Flip, in China.