Xiaomi’s Q3 Earning Report Show Steady Growth Amidst Downward Market Trends

Xiaomi released its Q3 Earnings Report on Nov. 19, demonstrating a strong and steady growth despite a downward trend in global smartphone sales.

According to data from the report, Xiaomi’s revenue in the last quarter was RMB 50.8 billion, a substantial increase of 49.1 percent from the same period last year. The adjusted profit was 2.9 billion yuan, an increase of 17.3 percent compared to the figure from the third quarter last year.

SEE ALSO: Xiaomi’s First Post-IPO Report Shows Strong Growth, Total Revenue Reached RMB 45 Billion in Q2 2018

Among all of its different business sectors, the smartphone sector is naturally the most significant one and accounted for 31 percent of the company’s total revenue. While the global mobile phone market is experiencing a decline in shipments, Xiaomi was able to achieve a sales volume of over 33.3 million units, a 20.4 percent year-on-year increase.

Xiaomi Q3 iOT performance
Xiaomi‘s IoT and home appliances performance in Q3 (source: Xiaomi)

The company’s Internet of Things and home appliances business sector contributed 10.8 billion yuan to its Q3 revenue, a year-on-year increase of 89.8 percent. The company’s smart TV’s has been experiencing a rather satisfactory sales volume with an increase of 198.5 percent. At the same time, Xiaomi laptops, smartwatches, and electric scooters are showing similar positive growth trends as well.

Xiaomi’s revenue from Internet services was roughly 4.7 billion yuan, a year-on-year increase of 85.5 percent, accounting for about 9.24 percent of its total revenue in the third quarter.

Xiaomi Q3 Internet Revenue
Xiaomi Internet Service Revenue (Source: Xiaomi)

Overall, judging from the numbers shown on the report, Xiaomi is currently sitting in a comfortable position and showing vigorous growth in all of its business sectors. Among them, smartphones, Xiaomi TV, Xiaomi IoT, and Internet service growths have all performed rather well.

Aside from the release of its Q3 Earnings Report, Xiaomi has also announced that it is effectively taking over Meitu’s hardware business. Smartphones released in the future will carry the Meitu brand logo, and Xiaomi will still be responsible for its designs, R&D, and sales. Meitu, on the other hand, will be involved in designing the camera software.

xiaomi and meitu smartphone cooperate
Xiaomi and Meitu smartphone cooperation

According to Meitu, the company sees Xiaomi as the “ideal partner” for expanding growth and allowing more users to get in touch with selfie smartphones. Meitu says its “mission is ‘to inspire more people to express their beauty,’ and the board believes that entering into this Strategic Cooperation Agreement will accelerate our pace in carrying out this mission.”

It seems like Xiaomi really needed a win to redeem itself from the recent failed campaign in the UK, where the company claimed that ten customers would be able to purchase a Mi A2 and Mi 8 Lite at just £1 online. The Flash Sale resulted in a disaster when programmers discovered that the website was coded to automatically direct customers to a “Sold Out” page when clicked. The UK social media was naturally flooded by complaints from frustrated customers who thought they were scammed into participating in a “clickbait” event that had no winners to begin with.

Xiaomi Store in UK
Xiaomi Store in the UK (Source: Xiaomi)

Xiaomi has since issued an apology explaining the blunder three days later, claiming that it was a lost-in-translation oversight. The so-called “flash sale” in essence was a raffle draw, and only ten smartphones were made available for the lucky winners. The company confirmed that ten customers have indeed been selected by the system randomly as the winners of the event and did not respond or provide further information regarding the coding of the website found by customers.

Featured photo credit to Xiaomi