Xiaomi’s revenue soared by 30.5% – helped by electric cars, expensive smartphones and household appliances

The Chinese company Xiaomi completed the third quarter of this year with revenue growth by 30.5% to $12.8 billion in exchange rate terms. This amount was higher than the consensus of analysts surveyed by Bloomberg. At the same time, the Chinese manufacturer announced its readiness to produce 130,000 SU7 electric vehicles by the end of this year instead of the previous 120 thousand.

Image source: Xiaomi, Weibo

The company’s net profit year-on-year increased by 4.4% to $870 million, which is also above market expectations and corresponds to a historical high. The company’s revenue has been growing for the third quarter in a row, and according to the results of the last quarter, it reached a record value of $12.8 billion. The growth of the profit margin to 20.4%, according to the company, was facilitated by the trend towards concentration of demand in the smartphone segment on premium models.

In its press release, Xiaomi reiterated its commitment to its goal of becoming a global leader in advanced technologies by 2030. Having delivered 39,790 SU7 electric vehicles in the third quarter, the company, together with other “new initiatives,” was able to earn $1.34 billion during the period. With such an active expansion of electric vehicle production and modest sales volumes, Xiaomi’s business producing cars of this type remains unprofitable. The average cost of the brand’s electric vehicle sold was $32,945, an increase of 4.4% sequentially. A total of 67,157 electric vehicles have been shipped since March of this year, when SU7 deliveries began. In general, the direction of new initiatives provides a profit margin of 17.1%, and its share in the company’s total revenue reaches 10.5%.

In the smartphone segment, the company’s revenue in the third quarter grew by 13.9% to $6.6 billion. According to Canalys estimates, the global smartphone market grew by 5% in the third quarter. Xiaomi managed to take third place in the global market with 42.8 million smartphones shipped and a share of 14%. Only Samsung and Apple performed better than it, occupying 19 and 18% of the smartphone market, respectively. According to Xiaomi’s own data, in the third quarter, shipments of the brand’s smartphones increased by 3.1% to 43.1 million units. In the domestic market of China, Xiaomi took 14.7% of the smartphone segment and fourth place in the third quarter. Its share of the domestic smartphone market has been growing for the third quarter in a row.

Internet of Things added 26.3% to revenue to $3.6 billion, and the segment’s profit margin rose 2.9 percentage points to 20.8%. In the third quarter, a record number of Xiaomi brand refrigerators and washing machines were shipped – 810 thousand and 480 thousand units, respectively, and shipments of air conditioners increased by 55% to 1.7 million units. The company holds fifth place in the global tablet market and third in China. The volume of deliveries of wearable electronics of this brand increased by 50%, in the segment of smart watches and wireless headphones they reached record levels.

The services segment increased quarterly revenue by 9.1% to a record $1.17 billion. Typically, in this segment the company’s profit margin reaches a significant 77.5% and continues to grow. The number of monthly active users of Xiaomi devices with Internet connectivity worldwide reached 685.8 million, representing a year-on-year growth of 10.1%. In China, approximately comparable growth ensured an increase in the audience to 167.9 million users per month.

On Weibo, company founder Lei Jun said he was raising the electric vehicle production target for this year. Xiaomi has already produced 100,000 SU7 electric vehicles; previously it planned to produce 120,000 vehicles by the end of the year, and now management considers it possible to produce 130,000 electric vehicles by the end of this year.