Smartphones and electric vehicles fuel Xiaomi’s 32% jump in quarterly revenue

According to IDC, Xiaomi remained the world’s third-largest smartphone maker in the second quarter, increasing shipments of this type of product by 28% year-on-year. Xiaomi’s official reporting states that its revenue for the period grew by 32%, and the brand’s electric vehicles played a significant role in this.

Xiaomi’s revenue growth rate in the past quarter was the highest since 2021, as Bloomberg explains. The company’s revenue in yuan for the period increased by 32% and was higher than market expectations, and in dollar terms it reached $12.5 billion. Net profit amounted to $715 million, which is significantly higher than the expected level of $533 million. Such dynamics were facilitated not only by the recovery in demand for smartphones, but also the start of deliveries of Xiaomi SU7 electric vehicles. Queues to receive them in China are still measured in a period of six to eight months.

As was said at the quarterly reporting event, by November Xiaomi expects to deliver its 100,000th electric vehicle to customers, and by the end of the entire current year to reach the milestone of 120,000 delivered cars. In the second quarter, as it became known today, Xiaomi delivered 27,307 electric vehicles to the market. The company’s electric vehicle assembly plant in Beijing has been operating two shifts since June. In just one quarter, deliveries of electric vehicles allowed Xiaomi to earn about $870 million. It is easy to calculate that the average cost of an SU7 electric vehicle sold during the period exceeded $32,000.

In general, Xiaomi’s innovative business line, which includes the assembly of electric vehicles, provided itself with a profit margin of 15.4%. Based on these data, it is difficult to judge what the profit margin was in the assembly of electric vehicles as such, but for a new player in a highly competitive market this is a very respectable indicator. This month, Xiaomi expects to allow the use of its proprietary NOA autopilot throughout China. Xiaomi founder Lei Jun demonstrated the SU7 electric car at the Olympic Games in Paris and promised that cars of this brand will be sold throughout the world. In the next 15 or 20 years, Xiaomi wants to become one of the five largest automakers in the world.