Xiaomi revenue surges record 64% as smartphone sales rise

Xiaomi saw its second-quarter revenue rise a record 64% from a year earlier, it said on Wednesday, as the company grew its share of the global smartphone market and expanded its ‘IoT’ product footprint.

In the second quarter of 2021, Xiaomi’s total revenue amounted to RMB87.8 billion, representing an increase of 64.0% year-over-year; adjusted net profit for the period was RMB6.3 billion, an increase of 87.4% year-over-year. Total revenue and adjusted net profit both reached record highs in the quarter demonstrating the excellence of the business model and the robustness of its operations.

Global smartphone shipments ranking rose to No.2, firmly establishing the Xiaomi brand in the premium smartphone market with its products.

Mi’s smartphone business continued to exhibit significant growth in the second quarter of 2021, highlighted by record-breaking smartphone revenue and shipments. Smartphone revenue amounted to RMB59.1 billion in the reporting period representing an increase of 86.8% year-over-year. The Group’s global smartphone shipments reached 52.9 million units representing an increase of 86.8% year-over-year. According to Canalys, Xiaomi’s global smartphone shipments ranked No. 2 for the first time in the second quarter with a market share of 16.7%.

Meanwhile, the Group’s smartphone shipments in mainland China market also grew rapidly. According to Canalys, in the second quarter of 2021, our smartphone market share in mainland China rose to 16.8% from 10.3% in the second quarter of 2020, ranking third with a 35.1% year-over-year increase in smartphone shipments, the highest growth rate among major players in the market.

According to third party data, in the second quarter of 2021, the market share of Xiaomi’s smartphones in mainland China with prices between RMB3,000 and RMB4,000, RMB4,000 and RMB5,000, and above RMB5,000, witnessed a year-over-year increase. In the first half of 2021, the global shipments of our smartphones with retail prices at or above RMB3,000 in mainland China and EUR300 or equivalent in overseas markets exceeded 12 million units, surpassing the total of around 10 million units shipped in 2020.

Redmi brand continues to provide competitive products. As of April 30, 2021, accumulated global shipments of the Redmi Note Series surpassed 200 million units, reflecting increasing mass-market resonance of the Redmi brand and the high quality of Redmi smartphones. On May 26, 2021, we unveiled the Redmi Note 10 series in mainland China, where it enjoyed an enthusiastic reception.

In the second quarter of 2021, IoT and lifestyle products segment maintained robust growth with revenue increasing 35.9% year-over-year to RMB20.7 billion.

In the second quarter of 2021, global shipments of smart TVs surpassed 2.5 million units, maintaining the leading market position. According to All View Cloud (“AVC”), our TV shipments ranked No. 1 in mainland China for the 10thconsecutive quarter, and remained among the top 5 globally.

The Group’s IoT and lifestyle product segment also maintained its rapid growth trajectory in overseas markets. Revenue from IoT and lifestyle products in overseas markets increased by 93.8% year-over-year in the quarter. Electric scooters, smart TVs, smart bands, and smart watches maintained their widespread popularity in the overseas market.

As of June 30, 2021, the number of connected IoT devices (excluding smartphones and laptops) on the Group’s AIoT platform reached 374.5 million units, representing a year-over-year increase of 34.0%. The number of users with five or more devices connected to AIoT platform (excluding smartphones and laptops) reached 7.4 million, representing a year-over-year increase of 44.5%. In June 2021, the MAU of our AI Assistant (“小愛同學”) exceeded the 100 million mark for the first time, reaching 102.0 million, and the MAU of Mi Home App grew to 56.5 million, representing a year-over-year increase of 38.6%.

Revenue from internet services reached record high, user base in key overseas markets continued to expand

Xiaomi’s internet services segment maintained its growth momentum. In the second quarter of 2021, revenue from internet services amounted to RMB7.0 billion, reaching a record high and representing an increase of 19.1% year-over-year.

The Group also continued to leverage its online channels overseas. In the first half of 2021, it sold more than 10 million smartphones via online channels in overseas markets, excluding India, representing an increase of over 60% year-over-year.

Robust growth underpinned by relentless focus on technological innovation and talent development

Xiaomi remain steadfast in its pursuit of technology advancement which strengthens the backbone of its business. In the second quarter of 2021, Xiaomi recorded RMB3.1 billion in research and development expenses representing a year-over-year increase of 56.5%.

In July 2021, the Group officially broke ground on Changping Smart Factory located at Changping district of Beijing. The facility will build upon its R&D and production capabilities with its Yizhuang Smart Factory. The Group aims to have the Changping Smart Factory support annual production capacity of up to 10 million premium smartphones. The Group believes that the smart factories will leverage its cutting-edge technologies and demonstrate transformative efficiency gains, further hastening the efficiency revolution in China’s manufacturing industry.