India operations help Xiaomi post robust profits

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Lei Jun, founder and CEO of Xiaomi Technology,

New Delhi, Riding on its India success story in the smartphone and TV businesses, Xiaomi has posted 71.7 per cent jump in net profit in the second quarter of 2019 and nearly 50 per cent increase in the first half (January-June period) this year.

In the first half of the year, Xiaomi’s revenue from international markets grew 33.8 per cent to 38.6 billion, accounting for more than 40 per cent of the Group’s total revenue.

In the first half, total revenue was approximately 95.71 billion yuan — up 20.2 per cent (YoY) and net profit was 5.72 billion yuan — up 49.8 per cent (YoY)

Xiaomi’s revenue from international markets grew 33.8 per cent to 38.6 billion, accounting for more than 40 per cent of the Group’s total revenue.

In the second quarter (Q2), revenue from international markets grew 33.1 per cent to 21.9 billion yuan.

“Our performance is testament to the success of our ‘Smartphone + AIoT’ dual-engine strategy and the Xiaomi business model. Looking ahead, we will continue to strengthen our R&D capabilities and investments to capture the great opportunities brought by 5G and AIoT markets,” said Xiaomi Founder, Chairman and CEO Lei Jun.

According to the IDC, Xiaomi’s smartphones ranked first in India in terms of shipments for eight consecutive quarters.

In terms of smart TV shipments, Xiaomi ranked 1st in India for five consecutive quarters as of the second quarter.

In addition, Xiaomi is dedicated to building and expanding its new retail channels in overseas markets.

As of June 30, there were 520 authorised Mi Home stores overseas, representing a 92.6 per cent YoY growth, of which 79 stores were located in India.

Currently, Xiaomi has more than 1,790 Mi Stores in India.

In the first half of 2019, revenue from Xiaomi’s smartphone segment was approximately 5.9 billion.

“Thanks to the Group’s constant improvement in its product portfolio and its dedicated efforts to making Redmi an independent brand, its multi-brand strategy is exhibiting increased advantages,” said the company.

Following the release of new flagship models of Mi 9 series and Redmi Note 7 series, Xiaomi released the new flagship model K20 series that highlights cost-effectiveness.

In the second quarter, smartphone sales volume reached 32.1 million units.

“The global sales volume of the Redmi Note 7 series reached 20 million units (as of June 30). In addition, the global shipments of the K20 series have already been recorded at more than 1 million units within the first month of its launch,” informed the company.

On August 7, Xiaomi launched an ultra-high resolution 64MP camera technology, which the Redmi product line was the first to adopt.

The Group also announced its collaboration with Samsung Electronics to bring the first-of-its-kind 100MP camera sensor to cater to the increasingly sophisticated demand of users.

As of June 30, the number of connected IoT devices (excluding smartphones and laptops) on Xiaomi’s IoT platform reached approximately 196 million units.