The effective implementation of ‘Smartphone + AIoT’ dual-engine strategy, as per Xiaomi, helped group register year-on-year 27.2 per cent increase during Q1 2019
In the first quarter of 2019, Xiaomi’s revenue from international markets grew 34.7 per cent year-on-year to RMB16.8 billion (approx $2.43 billion). A report published on the Xiaomi website also mentions that the company dominated the online smartphone market with 51 per cent market share by shipments in 2018 and has retained this number one market share position for ten consecutive quarters. It had a market share of over 20 per cent in the India offline smartphone sales during the fourth quarter of 2018.
Xiaomi founder, chairman and CEO, Lei Jun said, “The first quarter of 2019 was the first quarter after the launch of our dual-engine strategy of ‘Smartphone + AIoT’ and a series of key adjustments. Over the past year, we made significant improvements and adjustments in our core strategies, management structure, technology research and development system, product and brand development system, etc.”
Xiaomi’s official statement read, “Leveraging the effective implementation of its “Smartphone + AIoT” dual-engine strategy, the Group recorded revenue of approximately RMB 43.8 billion (approx $6.3 billion), representing a year-on-year increase of 27.2 per cent. The group focused on the rapid expansion in international markets, with revenue growing 34.7 per cent year-on-year to RMB 16.8 billion. Net profit for the first quarter was approximately RMB 3.2 billion and adjusted net profit (Non-IFRS Measure) was approximately RMB 2.1 billion, representing a year-on-year increase of 22.4 per cent, or 12.3 per cent compared to the last quarter.”
Smartphone + AIoT dual-engine strategy
During the first quarter of 2019, revenue of the IoT and lifestyle products segment rose by 56.5 per cent to RMB 12.0 billion (approx $1.74 billion) over the corresponding period of 2018. During the reporting period, the group’s smart TVs continued to lead the way, ranking first in terms of shipments for two consecutive quarters in mainland China.
Jun added, “Looking ahead, we will be investing RMB10 billion in the development of ‘All in AIoT’ in the next 5 years, to capture the development opportunities in the age of artificial intelligence (AI) and IoT, thus laying a solid foundation for Xiaomi’s development in the next 5 to 10 years. We will replicate our success in the enhancement and adjustment of business strategies in the domestic market to our international markets.”
As of March 31, 2019, global shipments of the smart TVs reached 2.6 million units, representing a year-on-year growth of 99.8 per cent. Excluding smart TVs and laptops, the Group’s ecosystem products, such as Mi Band, Mi Air Purifier and Mi Electric Scooter, also achieved robust sales growth.
171 million devices connected on Xiaomi’s IoT platform
As of March 31, 2019, the number of connected IoT devices (excluding smartphones and laptops) on Xiaomi’s IoT platform, as per the company, reached approximately 171 million units, a quarter-over-quarter increase of 13.7 per cent and a year-on-year increase of 70.0 per cent.
As of March 31, 2019, its AI assistant, Mau, had more than 45.5 million monthly active users, making it one of the most used AI voice interactive platforms in mainland China. On March 7, 2019, the Group established the AIoT strategy committee to help its AIoT development and enhance synergy among our departments.
According to Canalys, during the reporting period, Xiaomi ranked in the top five in over 40 countries and regions in terms of shipments, remained number one in market share position by shipments for seven consecutive quarters in India; and continued to maintain a high growth rate, ranking fourth in terms of smartphone shipments for Western Europe, with shipments to the region growing by 115.1 per cent year-on-year.
As of March 31, 2019, there were 480 authorized Mi Home stores in the world, representing a 93.5 per cent year-on-year growth, of which 79 stores were in India.