The good results from Xiaomi continue to hold quarter after quarter. The latest of these, the second of 2024, confirms that the Chinese firm is in a good moment, with higher revenues, which are growing at a high speed and in double digits thanks precisely to the good performance of its range of smartphones.
And the Asian manufacturer has improved in all facets of its business in this second quarter, with its traditional devices performing at a high level and with the emergence of its new electric car with a positive balance for the moment.
Xiaomi’s profit rises in the second quarter
Xiaomi has reported a net profit of 5.1 billion yuan, an increase of no less than 38%. Revenue has grown to 88.9 billion yuana record in the historical sequence, while the weight of sales in China has been 57.2% with respect to the total of these revenues. The gross profit margin has remained stable at a figure of 20.7% and therefore these are positive levels for the brand.
The company has revealed that the R&D spending during this second quarter has increased by 20.7%reaching 5.5 billion Yuan, although it is expected to be even higher throughout the year, reaching a total of 24 billion Yuan with an increase of 25.7%. Therefore, these macro results are really good for maca, which only shows one negative figure.
And it is the one contributed by its electric vehiclewhich reported losses of 1.8 billion yuan this quarter, despite the great reception it has received, something that will tend to stabilize in the future. At the moment, the Revenue from this division has reached 6.4 billion yuanIn fact, Xiaomi is pleased to have exceeded sales expectations for its vehicles.
Smartphones continue to bring joy to Xiaomi
Lu Weibing has told shareholders that the brand has increased its global smartphone market share by 1.8%, now reaching 14.6% of total smartphone sales worldwide. A notable fact is that the brand has climbed to second place in the Latin American market, a milestone that it had never achieved before.
In the income section, Xiaomi’s smartphone division has reached 46.5 billion yuan, which means that sales have increased by 27.1%while smartphone shipments have reached 42.2 million units worldwide. This means that Xiaomi is the brand leading the growth among the top five smartphone brands. Xiaomi echoes the consultancy Canalys, which has highlighted that the brand has already accumulated 16 quarters among the top three smartphone manufacturers worldwide.
The range of Xiaomi’s most premium smartphones continues to achieve excellent results, already occupying 22.1% of total shipmentsXiaomi’s smartphone sales in its home country are growing, which is why its weight in these results is increasing. This represents an increase of 2% compared to the same period in 2023. The number of active users of the Xiaomi ecosystem worldwide has now reached 675.8 million, which represents a new increase of 11.5%.
To all this, the Xiaomi IoT ecosystemclosely related to the brand’s smartphones, has already reached a figure of 26.8 billion yuan, which represents an increase of 20.3% in this second quarter. Finally, Xiaomi has highlighted that AI will be an enhancer of its intelligent ecosystem “Human x Car x Home” that seeks to boost growth in all divisions of the brand, since it brings together devices that interconnect, interact with each other and ultimately increase the sense of belonging to the brand.