Xiaomi Manages Pull in a Revenue of More than CNY 50 Billion in 2019 Q2
COVID-19 and China
Financial updates. Image Credit: Adeolu Eletu/Unsplash

According to Xiaomi’s official financial report, in the first quarter of 2019 revenue from the firm’s smartphone segment was approximately CNY 5.9 billion; whereas revenue in the second quarter totaled CNY 32 billion, mainly attributable to smartphone sales volume and increase in average selling price.

The total revenues for the first half of 2019 stood at CNY 95.71 billion (USD 13.56 billion), a 20% improvement compared to the same period last year. Gross profit was approximately CNY 12.5 billion, up 25.3% year on year; Net profit was approximately CNY 5.15 billion and Non-IFRS adjusted net profit was approximately CNY 5.72billion, up 49.8% year on year. 

However, Xiaomi’s market share in China declined by a fifth in the Q2 2019 as Huawei’s market share surged 31%, according to Canalys research

Xiaomi’s shipped a total of 60 million smartphones in the first half of 2019 out of which 32 million units were shipped in the second quarter. Other than smartphones, world’s fourth largest phone vendor is smart-home devices to generate more sources of revenue. IoT and lifestyle products business accounted for more than a quarter of the total revenue with an increase of 44%. It also invested in several companies including semiconductor makers, with an aim to imitate the success of Huawei’s HiSilicon.

A shipment of 5.4 million units of Mi TV’s were made in 2019 H1. Xiaomi is now in the top five TV manufacturers globally. The firms IoT solutions are now claimed to be running on 196 million devices worldwide, and the internet services revenue increased to CNY 8.8 billion (USD 1.25 billion) which is a 108% improvement compared to 2018 H1. 

Xiaomi Founder, Chairman and CEO Lei Jun (雷军) 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.” 

He further added, “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.”

In addition, Xiaomi is expanding its new retail channels in overseas abroad. As of 30 June 2019, there were 520 authorized Mi Home stores overseas, representing a 92.6% YoY growth, of which 79 stores were located in India. Currently, Xiaomi has more than 1,790 Mi Stores in India.

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