Xiaomi Releases Q2 Financial Report: Mid-to-high-end Smartphone Sales Surge

Chinese smartphone and smart hardware manufacturer, Xiaomi Group, recently released its second-quarter financial report for 2020.

The report shows that Xiaomi‘s total revenue hit 53.54 billion yuan, a 3.1% increase year-on-year, which is higher than the market expectation of 51.4 billion yuan. Within the same period of last year, the company’s revenue amounted to 51.951 billion yuan.

Xiaomi‘s adjusted net profit hit 3.4 billion yuan, down 7.2% year-on-year, higher than the market expectation of 2.362 billion yuan.

In the first half of 2020, Xiaomi racked up 103.2 billion yuan for its total revenue, a year-on-year increase of 7.9%. The adjusted net profit totaled 5.67 billion yuan, a year-on-year decline of 0.7%.

Affected by the coronavirus shutdown, Xiaomi’s smartphone revenue in the second quarter amounted to 31.6 billion yuan, down 1.2% year-on-year. Its Q2 sales hit 28.3 million units.

At the same time, thanks to the increase in sales of mid-to-high-end mobile phones, Xiaomi‘s global average selling price of smartphones continued to rise, up 11.8% year-on-year and 7.5% quarter-over-quarter.

The company said in the report, citing Canalys data, that Xiaomi’s smartphone shipments in the European market in Q2 increased by 64.9% year-on-year, ranking within the top three in terms of market share for the first time. The company’s total market share in smartphone shipments ranked among the top five in 50 countries and regions, and among the top three in 25 different markets.

Xiaomi’s revenue from IoT and consumer products in the second quarter totaled 15.3 billion yuan, an increase of 2.1% over the same period last year.

As of June 30, 2020, the number of IoT devices (excluding smartphones and laptops) connected to Xiaomi‘s IoT platform totaled 271 million, a year-on-year increase of 38.3%. The monthly active users of the artificial intelligence assistant “Xiao Ai” reached 78.4 million MAU in June 2020, a year-on-year increase of 57.1%.

For internet services, Xiaomi’s revenue hit 5.9 billion yuan, a year-on-year increase of 29%, accounting for 11% of total revenue.

In the second quarter of 2020, Xiaomi‘s overseas market revenue reached 24 billion yuan, a year-on-year increase of 10%, accounting for 44.9% of total revenue.

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Xiaomi also disclosed the company’s investment status in its financial report. As of June 30, 2020, Xiaomi Group has invested in more than 300 companies with a total book value of 36.8 billion, a year-on-year increase of 28.4%. In the second quarter, net gains on disposal of investments reached 1.16 billion after tax.