Fresh from its IPO, Xiaomi revealed a healthy profit for the second quarter of 2018, with a strong performance in its core smartphone business accompanied by growth in connected products.
The company said it generated a 58.7 per cent year-on-year increase in smartphone revenue to CNY30.5 billion ($4.5 billion), on the back of both increased volume and higher average selling prices (ASPs). Volume for the quarter reached 32 million units, up 43.9 per cent.
For its home market, it said its smartphone focus is on expanding in the high-end, where it made “good progress” with ASPs up 25 per cent. But it noted the market is in “a period of recalibration”, with its work at the high-end and an optimisation of the portfolio expected to “lay the groundwork for further shipment growth in China in 2019”.
Internationally, Xiaomi cited industry analysts which gave it a strong position in India, while noting it also expanded into France and Italy. IDC analyst Francisco Jeronimo noted the vendor is now number four in Italy and the seventh largest smartphone player in France after launching in both regions in the April – June quarter.
Revenue in IoT and lifestyle products more than doubled to CNY10.4 billion, with the company noting strong growth in smart TVs and a broadening of its portfolio; including new wearables and VR hardware.
It ended the period with 115 million connected IoT devices (excluding smartphones and laptops), representing 15 per cent sequential growth. It said there are almost 1.7 million users who own more than five Xiaomi IoT devices.
Internet services sales grew 63.6 per cent year-on-year to CNY4 billion, driven primarily by increasing monetisation in mainland China. Advertising revenue grew 69.6 per cent to CNY2.5 billion, with revenue from internet value-added services up 54.1 per cent to CNY1.5 billion.
It noted the majority of internet services revenue comes from China, with the company stating it is “developing internet services for our international users to provide them with a better user experience, and to lay the foundation for future revenue growth”.
For the three months to 30 June 2018, Xiaomi reported a profit of CNY14.6 billion, compared with a prior-year loss of CNY12 billion, on revenue of CNY45.2 billion, up 68.3 per cent.Subscribe to our daily newsletter Back