Xiaomi Made Rs 95,700 Crores Revenue During January to June 2019

  • Xiaomi has been focusing on its smartphone + AIoT dual-engine strategy
  • The company said that its IoT platform consists of 196 million connected devices

Xiaomi Corporation, an internet company with smartphones and smart hardware connected by an Internet of Things (IoT) platform, has announced its un-audited consolidated results for the second quarter and the six months ended 30 June 2019 (1H2019).

In 1H2019, the group’s total revenue increased by 20.2 per cent to approximately RMB 95.71 billion (Rs 95,700 Crore). Revenue from overseas business was RMB 38.6 billion, accounting for more than 40 per cent of total revenue. Adjusted net profit (non-IFRS measure) was RMB5.72 billion, up 49.8 per cent year-on-year (YoY). In the second quarter of 2019 (2Q2019), Xiaomi’s total revenue grew by 14.8 per cent to RMB 51.95 billion. Adjusted net profit (non-IFRS measure) was RMB 3.64 billion, increasing substantially by 71.7 per cent YoY.

Xiaomi Founder, chairman and CEO Lei Jun said, “Thanks to the Xiaomi relentless efforts, we have managed to achieve solid growth in our businesses, posting a consensus-beating profit and becoming the youngest Fortune Global 500 company in 2019, despite global economic challenges. Our performance is testament to the success of our ‘Smartphone + AIoT’ dual-engine strategy and the Xiaomi business model. Looking ahead, we will continue to strengthen our R&D capabilities and investments so as to capture the great opportunities brought by 5G and AIoT markets and strive towards ongoing achievements for the company.”

Multi-brand advantages

In the first half of 2019, revenue from Xiaomi’s smartphone segment was approximately RMB 5.9 billion; whereas revenue in the second quarter totaled RMB 32.0 billion, mainly attributable to smartphone sales volume and increase in average selling price (ASP). According to Canalys, Xiaomi ranked fourth globally in terms of smartphone shipments during the second quarter of 2019.

Xiaomi’s official statment read, “Thanks to the Group’s constant improvement in its product portfolio and its dedicated efforts to making Redmi an independent brand, its multi-brand strategy is exhibiting increased advantages: gross margin increased remarkably from 3.3 per cent in the first quarter to 8.1 per cent in the second quarter whereas the ASP of the smartphones in mainland China and in overseas markets achieved a YoY growth of 13.3 per cent and 6.7 per cent respectively, with revenue from smartphones priced over RMB 2,000 accounting for 32.3 per cent of the total revenue of the smartphones segment.”

Revenue from the IoT and lifestyle products

During the first half of 2019, revenue from Xiaomi’s IoT and lifestyle products segment rose by 49.3 per cent to RMB 27.0 billion over the corresponding period of 2018. In the second quarter of 2019, revenue of the IoT and lifestyle products segment increased by 44 per cent YoY to RMB 14.9 billion. It is worth noting that IoT and lifestyle products accounted for 28.8 per cent of total revenue in the second quarter of the year, compared with 22.9 per cent in the same period last year.

Xiaomi’s official satetment read, “Xiaomi’s smart TVs continued to maintain its leading position. The global shipments of smart TV reached 5.4 million units in the first half of the year, representing a YoY growth of 64.9 per cent, ranking 1st and top five in terms of shipments in mainland China and globally, according to AVC. In the second quarter, global shipments of smart TV totaled 2.7 million units, increasing by 41.1 per cent YoY. On the other hand, shipments of the Mi air conditioners exceeded 1 million units in the first half of the year, whereas shipments of Mi Band also exceeded one million units within 8 days of its launch on 14 June 2019.”

As of 30 June 2019, there were 520 authorized Mi Home stores overseas, representing a 92.6 per centYoY growth, of which 79 stores were located in India. Currently, Xiaomi has more than 1,790 Mi Stores in India.

Author – Mukul Yudhveer Singh. An avid reader, Mukul finds peace in books and technology. He’s as passionate about writing as he is about playing cricket and hitting the gym. If not writing or reading, you will most likely find him drawing tattoo designs or analyzing political campaigns.