Revenue from Xiaomi’s smartphone segment was RMB61.952 billion and RMB31.628 billion in the first half and second quarter of 2020 respectively, and the smartphone shipments reached 28.3 million units.
According to Canalys, Xiaomi ranked 4th globally in terms of smartphone shipments in the second quarter of 2020, and its market share stood at 10.1%.
In overseas markets, shipments of its premium smartphones, with a retail price of €300 or more, went up by 99.2% YoY in the second quarter of 2020. Driven by the higher proportion of sales from mid- to high-end smartphones, the average selling price (“ASP”) of the smartphones increased by 11.8% YoY and 7.5% QoQ.
In August 2020, Xiaomi launched the Mi 10 Ultra, which achieved a DXOMARK score of 130 for overall camera performance, once again ranking 1st globally at the time of launch. The sales have exceeded RMB400 million after 10 minutes of its debut.
The Redmi brand continued to make 5G technology accessible to the mass market. In June 2020, it launched the Redmi 9A series which priced from only RMB499. It then launched the Redmi K30 Ultra in August, sporting all-around premium features with prices starting from only RMB1,999.
Xiaomi also launched its smart factory recently with a total investment amount of RMB600 million, opening up an era of smart and manufacturing at Xiaomi’s factories. The Mi 10 Ultra is the first mass-produced ultra-high-end model of the Xiaomi Smart Factory.
Revenue from the IoT and lifestyle products segment was RMB28.237 billion and RMB15.253 billion in the first half and second quarter of 2020, respectively.
Xiaomi’s global TV shipments still amounted to 2.8 million units, achieving YoY growth despite a decline in the overall TV market.
According to All View Cloud (“AVC”), in the second quarter of 2020, its TV shipments in mainland China ranked 1st for the 6th consecutive quarter and ranked among the top five globally.
In Q2 2020, Xiaomi introduced two flagship products under the new Mi TV Master Series, further expanding its footprint in the premium market.
In July 2020, Xiaomi introduced its first OLED TV, Mi TV Lux 65” OLED. In August 2020, it launched the second ultra-high-end TV within the Mi TV Master Series–Mi TV LUX Transparent Edition, which is the world’s first mass-produced transparent TV.
Xiaomi’s smart TVs entered more markets, including Poland, France, and Italy during the second quarter.
In July 2020, Xiaomi held its first global Xiaomi Ecosystem Product Launch and released a series of new products, including the Mi Smart Band 5 and Mi True Wireless Earphones 2 Basic.
Recently, Xiaomi Founder, Chairman and CEO Mr. Lei Jun distributed a letter to employee, announcing that Xiaomi’s core strategy will be upgraded to “Smartphone x AIoT” in the next decade to drive synergistic benefits, with smartphone remains as the cornerstone to its business while AIoT will build a smart life around smartphones to let Xiaomi truly lead the future way of smart living
As of June 30, 2020, the number of connected IoT devices (excluding smartphones and laptops) on Xiaomi’s IoT platform reached approximately 271.0 million units, representing a YoY increase of 38.3%.
The number of users who have five or more devices connected to Xiaomi’s IoT platform (excluding smartphones and laptops) increased to over 5.1 million, representing a YoY growth of 63.9%.
Mi Home App had 40.8 million MAU, representing a YoY increase of 34.1%, in which non-Xiaomi smartphone users accounted for 67.9%. In June 2020, Xiaomi’s AI Assistant had 78.4 million MAU, an increase of 57.1% YoY.
Xiaomi continued to strengthen the interconnectivity across products with the “Xiaomi Share” initiative.
“Xiaomi Share” supports always-on access to music, video, and voice calls when switching across multiple devices. In addition, it developed the multi-screen collaboration function, which supports cross-device photographing and document editing.
Going forward, Xiaomi will continue to enhance the connectivity between smart devices, and offer more intelligent user experiences and application scenarios, thereby bringing global Xiaomi users to the forefront of future smart living.
Increasing Contribution of Diversified Internet Services
Revenue of the internet services segment amounted to RMB11.808 billion and RMB5.908 billion In the first half and second quarter of 2020 respectively.
In the second quarter of 2020, the MAU of MIUI increased by 23.3% year-over-year to 343.5 million while the mainland China MAU of MIUI was 109.7 million.
Advertising revenue increased by 23.2% YoY to RMB3.1 billion, driven by the rapid growth in overseas advertising revenue, as well as the gradual recovery in advertising budgets in mainland China.
Internet services revenue outside of advertising and gaming from mainland China smartphones, including those generated from the Youpin e-commerce platform, fintech business, TV internet services and overseas internet services, increased by 39.5% YoY, accounting for 39% of its total internet services revenue.
In June 2020, MAU of Xiaomi smart TVs and Mi Box reached 32.0 million, an increase of 41.8% YoY.
As of June 30, 2020, the number of paid subscribers increased by 33.1% YoY to 4.0 million.
Business in Overseas Markets
Revenue from overseas markets was RMB48.861 billion and RMB24.029 billion in the first half and second quarter of 2020 respectively.
According to Canalys, in the second quarter of 2020, Xiaomi’s market shares in terms of smartphone shipments ranked among the top five in 50 countries and regions and reached the top three in 25 of these markets.
In the second quarter of 2020, according to Canalys, Xiaomi’s smartphone shipments grew by 64.9% YoY in Europe, achieving a total market share of 16.8%, ranking it in the top three for the first time.
In Western Europe, Xiaomi’s smartphone shipments grew 115.9% YoY, accounting for a 12.4% market share. The Group’s smartphone shipments in Spain grew by 150.6% YoY, ranking 1st for two consecutive quarters with a 36.8% market share.
During the quarter, Xiaomi ranked 2nd in France and 4th in Germany and Italy, in terms of smartphone shipments.
In Eastern Europe, Xiaomi became the No.1 smartphone company in Ukraine and Poland in terms of smartphone shipments, with respective market shares of 37.1% and 27.5%.
In addition, in the second quarter of 2020, the Group captured a market share of 30.7% by shipments in the Indian smartphone market. According to IDC, it retained the No.1 position in the Indian smartphone market for the 12th consecutive quarter.
Financial Highlights for Q2 2020
- Total revenue was approximately RMB53.54 billion, up 3.1% YoY and 7.7% quarter-on-quarter (“QoQ”);
- Gross profit was approximately RMB7.70 billion, up 6.1% YoY and 1.9% QoQ;
- Profit for the period was approximately RMB4.49 billion, up 129.8% YoY and 108% QoQ;
- Non-IFRS adjusted net profit was approximately3.37 billion, down 7.2% YoY, but increased by 46.6% QoQ;
- Earnings per share was RMB0.189.
Financial Highlights for H1 2020
- Total revenue amounted to RMB103.24 billion, representing an increase of 7.9% year-over-year (“YoY”), beating market consensus;
- Gross profit was approximately RMB15.26 billion, up 22.3% YoY;
- Profit for the period was approximately RMB6.65 billion, up 29.3% YoY, beating market consensus;
- Non-IFRS adjusted net profit was approximately RMB5.67 billion, down 0.7% YoY, beating market consensus;
- Earnings per share was RMB0.279.