Xiaomi Corporation has shared its financial results for Q2 2024, and the company is doing well. Xiaomi’s revenue and profit increased thanks to strong smartphone sales and the launch of its new electric vehicle, the SU7. The company is expanding its reach and products, demonstrating its ability to grow in a rapidly changing market.
Strong Smartphone Sales
Xiaomi’s smartphone shipments were a big part of its success in Q2 2024. From April to June, Xiaomi earned CNY46.5 billion (about $6.5 billion) from smartphone shipments. That’s a 27% increase from the same period last year. Xiaomi shipped 42.2 million smartphones, including models from its Redmi and Poco sub-brands.
Premium smartphones accounted for 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 top-tier phones are not yet available in other countries.
For the 16th consecutive quarter, Xiaomi remains the world's third-largest smartphone maker, behind only Apple and Samsung. Xiaomi also gained strong market shares in Latin America and the Middle East, where it ranked among the top two brands with 18.6% and 21.2% market share, respectively.
Entering the Electric Vehicle Market
Xiaomi has also entered the electric vehicle (EV) market with the launch of the SU7 EV. The SU7 has performed well since its launch in April 2024, with 27,307 units sold by the end of Q2. This demonstrates 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 (about $252 million). Despite the loss, Xiaomi is optimistic about the future of its EV business. Xiaomi Founder and Chairman Lu Weibing believes the company will deliver 120,000 SU7 vehicles by the end of 2024. To meet demand, Xiaomi has increased production and factories are now operating in 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 confident in its long-term success by expanding its product line and entering new markets.
Xiaomi's Growing Ecosystem and Global Presence Contribute to Xiaomi Sales
Xiaomi is not just about smartphones and EVs; it is also building a vast ecosystem of smart devices. This includes 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% YoY. Specifically, 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 huge advantage for Xiaomi, allowing the company to grow in different markets. Xiaomi’s success in building a loyal customer base is a result of its diverse products and competitive pricing. By offering connected devices, Xiaomi creates a seamless experience for users and encourages them to stay in the Xiaomi ecosystem.
Looking Ahead
Xiaomi is well-positioned for future growth. The company’s strong smartphone sales and 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 further 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 major player in the global EV market and further strengthen its position in the technology sector.
In summary, Xiaomi’s Q2 2024 results show that it is a growing and evolving company. With strong smartphone sales, a promising start in the EV market, and a growing smart device ecosystem, Xiaomi is poised for continued success. The company’s ability to innovate and adapt will be crucial to its future growth as it continues to push the boundaries in technology.