Xiaomi Q3 Revenue Reaches $12.22 Billion, a Year-on-year Increase of 8.2%

Xiaomi released its financial report for the third quarter of 2021 on Tuesday. Its revenue reached 78.06 billion yuan ($12.22 billion), up 8.2% year-on-year. Gross profit was 14.29 billion yuan, up 40.6% year-on-year, and operating profit was 2.73 billion yuan, down 59.2% year-on-year. Under non-IFRS, adjusted net profit was 5.176 billion yuan, up 25.4% year-on-year.

The company’s financial report shows that in the third quarter of 2021, the revenue from Internet services reached 7.3 billion yuan, a year-on-year increase of 27.1%. The advertising business revenue reached 4.8 billion yuan, a year-on-year increase of 44.7%. Game revenue reached 1 billion yuan, a year-on-year increase of 25.0%. Revenue from other value-added services reached 1.6 billion yuan. In the third quarter of 2021, Xiaomi‘s overseas market revenue reached 40.9 billion yuan, accounting for 52.4% of the total revenue.

In the third quarter of 2021, Xiaomi‘s global smartphone shipments reached 43.9 million units while revenue of the smart phone business rose just 0.4% to 47.8 billion yuan. Xiaomi expected smartphone shipments would reach 190 million units in 2021.

Xiaomi continues to explore several high-end fields. In the first three quarters of 2021, global shipments of the company’s smartphones priced at or above 3,000 yuan in Mainland China and EUR 300 or equivalent in overseas markets, totaled approximately 18 million, accounting for more than 12% of total shipments.

According to Canalys, Xiaomi‘s global wearable bands market share ranked No. 2 in the third quarter. In September 2021, Xiaomi launched its first adaptive active noise cancellation headphones, the Xiaomi Buds 3 Pro, featuring deep 40dB noise cancellation and spatial audio. The initial sales across all channels of the Redmi Watch 2, a new product launched in October, exceeded 10 million yuan within the first two hours of sales.

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Xiaomi MIUI’s global monthly users exceeded 500 million on Monday. Up to now, there have been 18.65 million new monthly users in China and 100 million new monthly users around the world. Among them, it took only 10 months for global monthly active users to rise from 400 million to 500 million.

In the conference call after the financial report, Xiaomi executives answered questions such as declined smartphone shipments, the progress of its automobile business, and their views on Metaverse.

Wang Xiang, partner and President of Xiaomi, said that more than 500 members have joined the automobile team, including many senior executives, and that now the core structure of the whole automobile business has been basically completed.

Wang Xiang said that the main reason for the decrease in smartphone shipments in the third quarter was due to chip shortages. “There will be a very good improvement next year as a whole, but there may be a shortage of 4G smartphones. The overall supply situation in the second half of next year will be better than that in the first half of next year,” Wang added.

Regarding the recent appearance of the Metaverse, Wang Xiang commented that the company is paying attention to the opportunities made possible by the  Metaverse, and has made a lot of technical reserves for this purpose. Xiaomi has invested in wearable devices, videos, displays, and has cooperated with famous foreign VR/AR brands.