On August 26, 2020, Xiaomi Group announced its 2020 interim results. Revenue and profit performance exceeded market expectations. In the first half of the year, total revenue reached 103.2 billion yuan, an increase of 7.9% year-on-year; adjusted net profit was 5.7 billion yuan.
In 2020, Q2 revenue was RMB 53.5 billion, an increase of 7.7% from the previous quarter; adjusted net profit was RMB 3.4 billion, an increase of 46.6% from the previous month.
In the second quarter of 2020, the global sales of Xiaomi mobile phones were 28.3 million units, ranking fourth in the world in market share. Xiaomi’s mobile phones continued to gain a foothold in the high-end market. The global average selling price of smartphones increased by 11.8%. In overseas markets, Xiaomi’s shipments of high-end mobile phones priced at €300 and above increased by 99.2% year-on-year in the second quarter. The European market grew by 64.9% year-on-year, making it into the top three for the first time. The Spanish smartphone market had the largest market share for two consecutive quarters.
Xiaomi’s AIoT business continues to lead the global smart life. As of June 30, 2020, the number of connected devices on the Xiaomi IoT platform reached 271 million, a year-on-year increase of 38.3%. In June 2020, the monthly active users of Xiao Ai reached 78.4 million, a year-on-year increase of 57.1%.
Internet services have grown steadily. In the second quarter of 2020, Internet service revenues reached RMB 5.9 billion, a year-on-year increase of 29%. In June 2020, MIUI global monthly active users reached 340 million, a year-on-year increase of 23.3%.
In the new ten years, Xiaomi has upgraded its core strategy to “Mobile X AIoT”, which has a multiplier effect and a unified whole that supports each other. Around the core business of mobile phones, the AIoT layout builds a better life, making Xiaomi truly a future lifestyle leader.
The mobile phone business has a stable high-end market share and ranks among the top four in the world
In the second quarter of 2020, despite the impact of the epidemic on the global mobile phone market, Xiaomi’s smartphone business remained stable, with revenue of RMB 31.6 billion and sales of 28.3 million mobile phones. According to Canalys statistics, in the second quarter of 2020, Xiaomi’s global smartphones Shipments continue to rank fourth in the world, with a market share of 10.1%.
The Xiaomi Group continued to promote its dual-brand strategy for mobile phones. The Xiaomi brand established itself in the high-end market. The sales volume of mid-to-high-end mobile phones increased, and the average unit price of smartphones increased by 11.8% year-on-year . During the JD 618 shopping festival, Xiaomi Mi 10 won the sales champion in the 3500-4500 price range. On August 11, the Mi 10 Extreme Commemorative Edition was launched, equipped with cutting-edge 120W wired fast charging and 50W wireless flash charging. The battery adopts the industry’s first mass production Graphene-based lithium-ion battery, and with a total score of 130 points, once again won the DXOMARK camera score the world’s first overall score , becoming the world’s best flagship phone for taking pictures. Redmi continues to promote the popularization of 5G mobile phones. In May, Canalys released data showing that three of the top ten best-selling models in the world in the first quarter of 2020 are Redmi models. Redmi is also the only domestic mobile phone brand on the list.
AIoT leads the future smart lifestyle
During the reporting period, the leading advantage of Xiaomi’s AIoT platform was further expanded. As of June 30, 2020, the number of IoT devices (excluding smartphones and laptops) connected to the IoT platform reached 271 million, a year-on-year increase of 38.3%. The number of users with five or more devices connected to the Xiaomi IoT platform increased to 5.1 million, a year-on-year increase of 63.9%.
On June 30, 2020, the number of monthly active users of the intelligent assistant “Xiao Ai” reached 78.4 million, a year-on-year increase of 57.1%, and continued to become one of the most active artificial intelligence voice interaction platforms in China. The openness of Xiaomi’s smart life scene continues to increase. In June 2020, the number of monthly active users of the Mijia App reached 40.8 million, a year-on-year increase of 34.1%. Among them, 67.9% of users are from non-Xiaomi mobile phone users.
In August 2020, Xiaomi also released the Mi Miaoxiang function that supports collaborative interaction between Xiaomi devices, which supports multiple functions such as cross-screen collaboration between mobile phones and notebooks, one-key transfer of video calls to multiple terminals, and relay transmission of music and pictures. , Continuous smart home, wearable devices, and screen terminals. Bring richer scene applications and a more convenient and elegant interconnection experience. This is an upgrade of the smart collaboration capabilities of mobile phones and IoT devices.
In the new ten years, centering on the core of the mobile phone business, the AIoT ecosystem will penetrate multiple scenarios, win more users, obtain massive amounts of data, and become the moat of Xiaomi’s business model, making Xiaomi a leader in future lifestyles.
IoT and consumer goods have grown steadily, and smart TVs have ranked first in China
Although the epidemic in the first half of 2020 affected the pace of production, transportation, sales and product release, Xiaomi’s IoT and consumer goods businesses resisted the pressure and maintained growth. During the reporting period, revenue reached RMB 15.3 billion, a year-on-year increase of 2.1%.
Xiaomi smart TVs continue to maintain their leading position in the industry. In the second quarter of 2020, the global shipments of Xiaomi smart TVs are 2.8 million units. According to statistics from Aowei Cloud Network, as of the second quarter of 2020, Xiaomi TV shipments have been stable for the sixth consecutive quarter. Ranked first in the Chinese mainland market. Xiaomi smart TVs are becoming more and more popular in overseas markets. Xiaomi smart TVs entered Poland, France, Italy and other markets in the second quarter. While maintaining the industry’s leading shipment volume, Xiaomi smart TVs continue to increase their technological investment and explore the high-end market. In July 2020, Xiaomi launched the first ultra-high-end TV-Master Series 65-inch OLED TV. In August of the same year, Xiaomi released the second ultra-high-end product of the Mi TV Master series, the Mi Transparent TV, the world’s first mass-produced transparent OLED TV. The subversive transparent form represents Xiaomi’s exploration of the ultimate form of TV in the future.
Xiaomi’s IoT business is also constantly exploring overseas markets. In July 2020, Xiaomi held the first global launch conference of the Xiaomi ecological chain, and launched to global users including Xiaomi Mi Band 5, Xiaomi True Wireless Headset 2 Basic, and Mercedes-AMG Explosive products such as the Xiaomi electric scooter Pro2 cooperated with Petronas F1 team.
Steady growth of Internet services and diversification trend further strengthen
In the second quarter of 2020, Xiaomi’s Internet service revenue grew strongly, reaching RMB 5.9 billion, a year-on-year increase of 29%.
In June 2020, MIUI monthly active users reached 340 million, a year-on-year increase of 23.3%.
The Internet advertising business continued to grow, with advertising revenue reaching 3.1 billion yuan in the second quarter of 2020, a year-on-year increase of 23.2%. It shows the vitality of Xiaomi Internet commercialization under different economic conditions.
In the second quarter of 2020, Xiaomi’s Internet business continued to diversify, and the vitality of emerging businesses continued to explode. Emerging business refers to Internet services other than smartphone advertising and games in Mainland China, including TV Internet, Youpin e-commerce, financial technology and overseas Internet. Revenue from this part of the business increased by 39.5% year-on-year, accounting for 39% of total Internet service revenue. Among them, the TV Internet business has grown strongly. As of June 2020, there were 32 million monthly active users of smart TVs and Xiaomi boxes, an increase of 41.8% year-on-year, and 4 million paid users of Xiaomi TV, an increase of 33.1% year-on-year.
Steady growth in overseas market revenue, European market entered the top three
In the second quarter of 2020, Xiaomi’s overseas market revenue reached RMB 24 billion, a year-on-year increase of 10%. According to Canalys data, in the second quarter of 2020, Xiaomi’s smartphone market share in a total of 50 countries and regions around the world ranked top five, and top three in 25 markets. Xiaomi’s mobile phone business is still growing in major markets, especially in the European market to maintain a rapid growth trend.
According to Canalys data, in the second quarter of 2020, Xiaomi’s smartphone shipments in the European market rose against the trend, with a year-on-year growth of 64.9%, and its market share reached 16.8%, making it the top three European smartphone manufacturers for the first time.
Xiaomi’s smartphone shipments in Western Europe increased by 115.9% year-on-year, ranking first among major manufacturers. Among them, the market share of smartphones in Spain remained the first for two consecutive quarters, with a growth rate of 150.6% and a market share of 36.8. %. It ranks second in the market share of smartphone shipments in France and the top four in Germany and Italy.
According to IDC statistics, in the second quarter of 2020, Xiaomi’s smartphone shipments remained the number one in India for twelve consecutive quarters. According to Canalys, Xiaomi’s share of the Indian smartphone market exceeded 30.7%. At the same time, the breadth of Xiaomi’s globalization has further expanded. In the second quarter of 2020, Xiaomi’s smartphone shipments in Latin America, the Middle East and Africa have increased year-on-year by 99.4%, 66.3%, and 113% respectively. The market share ranks among the top five in Africa, and in the Middle East and Latin America. All ranked in the top four.
JPMorgan Chase commented that Xiaomi’s rapid expansion of market share in the European market is conducive to attracting high-income user groups, further increasing the average selling price of mobile phones, and broadening the monetization space of Internet services.