Xiaomi Corporation shared its Q2 2024 financial results, and the company is doing well. Xiaomi’s revenue and profit grew, thanks to strong smartphone sales and the launch of its new electric vehicle, the SU7. The company is expanding its reach and products, showing its ability to grow in a fast-changing market.
Strong Smartphone Sales
Xiaomi’s smartphone sales were a big part of its success in Q2 2024. From April to June, Xiaomi earned CNY 46.5 billion (around $6.5 billion) from selling smartphones. This is a 27% increase from the same time last year. Xiaomi shipped 42.2 million smartphones, including models from its Redmi and Poco sub-brands.
Premium smartphones made up 22.1% of all shipments, which is a significant improvement. In Mainland China, premium models like the Xiaomi 14 Pro and Xiaomi Mix Fold 3 cost more than CNY 3,000 (about $420). However, many of these high-end phones are not yet available in other countries.
For the 16th quarter in a row, Xiaomi remains the third-largest smartphone maker in the world, behind only Apple and Samsung. Xiaomi has also gained strong market shares in Latin America and the Middle East, where it ranks among the top two brands, holding 18.6% and 21.2% of the market shares, respectively.
Entering the Electric Vehicle Market
Xiaomi has also stepped into the electric vehicle (EV) market with the launch of its SU7 EV. The SU7 has done well since its release in April 2024, with 27,307 units sold by the end of Q2. This shows Xiaomi’s ability to move into new areas beyond smartphones.
In Q2 2024, Xiaomi’s Smart EV business brought in CNY 6.4 billion (about $900 million). However, this part of Xiaomi’s business is still not profitable, as it reported a loss of CNY 1.8 billion (around $252 million). Despite the loss, Xiaomi is optimistic about the future of its EV business. Xiaomi’s Founder and President, Lu Weibing, believes the company will deliver 120,000 SU7 vehicles by the end of 2024. To meet demand, Xiaomi has increased production, with factories now working double shifts.
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While the Smart EV business is currently losing money, Xiaomi expects things to improve as orders increase. The company is betting on its long-term success by expanding its product lineup and moving into new markets.
Growing Xiaomi’s Ecosystem and Global Presence contributes to Xiaomi Sales
Xiaomi is not just about smartphones and EVs; it is also building a broad ecosystem of smart devices. These include everything from wearables to home appliances, all connected through Xiaomi’s Internet of Things (IoT) platform. As of Q2 2024, Xiaomi’s ecosystem had 676 million users, up 11.5% from last year. Notably, 164 million of these users are in Mainland China, meaning the majority of Xiaomi’s users are outside of China.
This global user base is a big advantage for Xiaomi, allowing the company to grow in different markets. Xiaomi’s success in creating a loyal customer base is a result of its diverse products and competitive pricing. By offering connected devices, Xiaomi creates a smooth experience for users, encouraging them to stay within the Xiaomi ecosystem.
Looking Ahead
Xiaomi is well-positioned for future growth. The company’s strong smartphone sales, along with its entry into the electric vehicle market, highlight its ability to innovate. Xiaomi’s strategy of diversifying its products and expanding into new markets should continue to pay off.
Xiaomi could see more growth by expanding its premium smartphones and EVs to international markets. This move could attract new customers and increase revenue. As Xiaomi’s Smart EV business matures, the company could become a significant player in the global EV market, further strengthening its position in the tech industry.
In summary, Xiaomi’s Q2 2024 results show a company that is growing and evolving. With strong smartphone sales, a promising start in the electric vehicle market, and a growing ecosystem of smart devices, Xiaomi is set for continued success. The company’s ability to innovate and adapt will be crucial for its future growth as it continues to push the boundaries in technology.
