Xiaomis Q3 Adjusted Net Profit of 6 billion yuan, Global Smartphone Shipments at 418 million units—What information should we pay attention to?

Xiaomi’s Sales and Rankings in the Fourth Quarter

Continuing to hold the third position globally in the second quarter, Xiaomi remained in third place in the third quarter. However, Xiaomi is a typical case of thriving domestically and struggling internationally. Everyone can compare and contrast the market shares of the domestic and global smartphone markets in the third quarter.

On the domestic front, Honor ranked first with 18% market share, shipping 11.8 million units. OPPO (including OnePlus) ranked second, shipping 10.9 million units. Apple came in third place with 10.6 million units shipped. Vivo and Xiaomi ranked fourth and fifth, respectively.

Looking at the global scale, Samsung topped the list with 58.6 million units shipped, holding a 20% market share. Apple followed in second place with 50 million units shipped and a 17% market share. Xiaomi claimed the third spot, shipping 41.5 million units and achieving a 2% YoY growth.

This is quite interesting, isn’t it? There is quite a contrast between the domestic and global markets. Just like when the Xiaomi 14 was just released, there were numerous negative articles. So, who is stronger in the end? Everyone has their own understanding.

Now, let’s imagine what ranking Xiaomi will achieve with the fourth-quarter sales of the Xiaomi 14.

Xiaomi Q3 Performance

Xiaomi’s Q3 revenue and profit have both increased against the trend, with Lu Weibing claiming that Xiaomi is currently in its best state.

“As the person responsible for our main business, I am feeling quite relaxed right now.” On the evening of November 20th, during a conference call discussing the latest disclosed financial performance, Lu Weibing, the President of Xiaomi, stated.

According to the information obtained during the call by Dahe Cai Lifang reporters, in Q3 of 2023, the group’s total revenue reached 70.9 billion yuan, with adjusted net profit of 6 billion yuan, an increase of over 180% compared to the same period last year. The adjusted net profit for the first three quarters is 1.7 times that of the entire previous year.

Data shows that in Q3 of 2023, Xiaomi’s overall gross profit margin reached a new high of 22.7%, an increase for the fourth consecutive quarter. Thanks to efficient business operations and a mature business model, the smartphone business and IoT and lifestyle consumer products business have continued to achieve record-high gross profit margins.

Mobile Phone Gross Margin Sets a New Record High

“People are paying close attention to Xiaomi’s mobile phone business, especially the development of its high-end business. The data from Xiaomi 14 can be said to have dispelled everyone’s doubts,” Lu Weibing mentioned. Xiaomi has released the all-new upgraded Xiaomi 14 series, which sold six times as much as the total sales of the Xiaomi 13 series in the first five minutes of its launch. The first-day sales volume has already exceeded one million units, and as of November 19, 2023, the positive review rate on JD.com has surpassed 99%, once again proving Xiaomi’s ability to consistently perform well in the high-end market.

Looking at the overall picture, as Xiaomi’s core business, the global smartphone shipment volume of Xiaomi in this quarter has seen a year-on-year decrease of 1.1% in the context of the global smartphone shipment decline. However, Xiaomi’s global smartphone shipment volume has experienced a double-digit increase, reaching 41.8 million units, the highest in nearly six quarters. As the only one among the top three global smartphone manufacturers with an increase in market share, Xiaomi’s global market share in this quarter reached 14.1%, maintaining its top three position globally for 13 consecutive quarters and ranking among the top three in 55 markets and among the top five in 65 markets worldwide.

Notably, during the just-concluded Double 11 Shopping Festival, Xiaomi’s channel products were all in full force, with a total payment amount of over 22.4 billion yuan across all channels, achieving the highest sales performance in the history of this annual promotion. Among them, the Xiaomi 14 series won the championship in both sales volume and sales value in the price range of 4,000 to 6,000 yuan on JD.com, Pinduoduo, and Tmall, as well as on Douyin, setting new records.

In terms of channel construction, Xiaomi continues to enhance the operating efficiency of its offline stores, and sales through offline channels have contributed to over 55% of Xiaomi’s high-end smartphone sales in mainland China, according to third-party data.

Deepening of Intelligent Moat Continues

Financial reports show that Xiaomi’s revenue from IoT and lifestyle consumer products in the third quarter reached RMB 20.7 billion, a year-on-year increase of 8.5%, with gross profit margin reaching a new historical high at 17.8%, up by 4.3 percentage points compared to the previous year.

However, what attracts more attention from the outside world than the data is the gradually enlarging interconnectivity advantages of Xiaomi’s ecosystem products. By September 30, 2023, Xiaomi’s AIoT platform has connected 699 million IoT devices (excluding smartphones, tablets, and laptops), a year-on-year increase of 25.2%. The number of users who have 5 or more devices connected to the AIoT platform (excluding smartphones, tablets, and laptops) reached 13.7 million, a year-on-year increase of 26.0%.

According to Oviyunet data, Xiaomi TV Q3 ranked first in terms of shipments in mainland China. Based on its in-depth exploration of high-end TV products, at the end of October, Xiaomi launched the Xiaomi TV S Pro 85 in mainland China, offering flagship-level configurations with high brightness, high refresh rate, and high partitioning. It is paired with Xiaomi’s self-developed Master Picture Quality Engine to make up for the shortcomings of high-end TV picture quality in the current market.

According to Canalys data, in terms of shipments, Xiaomi’s global tablet products saw a year-on-year increase of 120% in Q3 for the first time, entering the global top five. In mainland China, Xiaomi’s tablet products remained in third place, and its TWS earphones ranked second. At the end of October, Xiaomi released the Xiaomi Watch S3, which pioneered a design with interchangeable bezels, providing over 150 sports modes, an upgraded 12-channel heart rate detection module, a multi-sensor fusion algorithm, and dual-frequency independent satellite positioning.

Data disclosed at the “2023 Xiaomi IoT Ecological Partner Conference” held recently shows that Xiaomi’s ecosystem currently has over 200 categories of smart home appliances, covering over 95% of daily life scenarios, and already has over 9,000 ecological partners. In addition to being the world’s leading consumer IoT platform, Xiaomi IoT is also the ecosystem with the most comprehensive coverage of product categories at present.

Over 53% of Xiaomi’s R&D personnel

It is reported that Xiaomi’s Q3 R&D expenditure has reached 5 billion yuan, a year-on-year increase of 22.0%. It is also planned that R&D investment for the next 5 years (2022-2026) will exceed 100 billion yuan.

The latest disclosed data shows that as of September 30, 2023, Xiaomi’s R&D personnel reached 17,563, accounting for over 53%. “Continuous and long-term high investment in R&D will solidify Xiaomi’s innovation genes and promote the transformation of technological achievements.” said a representative from Xiaomi Group.

Recently, Xiaomi officially upgraded its group strategy to “People, Cars, and Homes Full Ecosystem” and launched the new operating system called Xiaomi Pangpao OS, injecting new momentum into the industry. Xiaomi Pangpao OS integrates the self-developed Xiaomi Vela with the underlying reconstructed Linux to achieve better performance.

At the same time, some securities firms have also given positive outlooks. Goldman Sachs stated that driven by the recovery of inventory replenishment and strong shipment growth outside of China, it believes the year-on-year recovery of Xiaomi’s revenue and smartphone shipments will continue until the fourth quarter of this year and even next year. It is expected that the core operating costs will increase by 13% year-on-year next year. In addition, with the growth in shipments gaining momentum, Xiaomi has the potential for multiple revaluations.

A China International Capital Corporation research report also mentioned that it remains optimistic about the successful launch and rapid growth of Xiaomi’s smart cars, which will bring new growth curves and valuation improvements for Xiaomi. It looks forward to the value of Xiaomi being widely recognized by the market after the full integration of smartphones, cars, and smart homes.

“In the third quarter, Xiaomi showcased its strong technological capabilities, opening up new areas of growth, leading the industry in high-end strength, and demonstrating the confidence of a technology company in its development.” At the end of the conference call, Lu Weibing also expressed his optimistic stance. Today’s Xiaomi is in its best state and is ready to unleash its potential for the future.

Dahe Caifang, Journalist: Jia Yongbiao, Writing: Wu Tongtong, Video Editing

Editor: Liu Anqi, Proofreader: Chen Xiaojuan, Reviewer: Li Zhen, Supervisor: Wan Junwei

Xiaomi Financial Report Data Analysis

A unique and exclusive analysis of Xiaomi’s financial report data across the entire internet.

Take you to understand the profitability of Xiaomi’s mobile phones, IoT, and Internet, as well as the top five mobile phone sales in various countries around the world.

If you want to know the sales volume of Xiaomi mobile phones worldwide and in various countries, don’t miss the second half of the content. It is probably the most comprehensive mobile phone sales data on the internet.

Financial Data

Overview

In the third quarter of 2023,

Xiaomi’s total revenue was 70.9 billion yuan, a YoY increase of 1%;

Gross profit was 16.1 billion yuan, a YoY increase of 38%;

Gross profit margin was 22.7%, a YoY increase of 6.1 percentage points;

Core business profit was 7.7 billion yuan, a YoY increase of 161%;

Core business profit margin was 10.8%, a YoY increase of 6.7 percentage points.

(Core business profit reflects the profit from mobile phones, IoT, and Internet businesses.

Core business profit = adjusted profit + profit influenced by electric vehicles/chip businesses)

The impact of electric vehicles/chip businesses on profit: 1.7 billion yuan;

(Note: This refers to the impact on profit. Investment in new electric vehicle/chip businesses far exceeds this value.)

Adjusted profit was 6 billion yuan, a YoY increase of 183%;

Hardware business profit: 3.2 billion yuan; profit margin: 5.2% (mobile phones + IoT);

Mobile phone business profit: 2 billion yuan; profit margin: 4.8%;

IoT business profit: 1.2 billion yuan; profit margin: 6%;

Internet business profit: 4.5 billion yuan; profit margin: 57.5%.

Hardware Business (Mobile Phone + IoT)

Revenue of 62.3 billion RMB, a year-on-year growth of 1%;

Gross profit margin of 17%, a year-on-year increase of 6.7 percentage points;

Profit of 3.2 billion RMB, a year-on-year growth of 439%;

Profit margin of 5.2%, a year-on-year increase of 6.7 percentage points;

Mobile Business

Revenue of 41.6 billion, a decrease of 2% year-on-year;

Gross profit margin of 16.6%, an increase of 7.7 percentage points year-on-year;

Profit of 2 billion, a growth of 258% year-on-year;

Profit margin of 4.8%, an increase of 7.8 percentage points year-on-year.

IOT Business

• Revenue: 20.7 billion, a year-on-year increase of 8%
• Gross margin: 17.8%, a year-on-year increase of 4.3 percentage points
• Profit: 1.2 billion, a year-on-year increase of 299%
• Profit margin: 6%, a year-on-year increase of 4.4 percentage points

Internet Business

Revenue reached 7.8 billion, a year-on-year growth of 10%.

Gross profit margin was 74.4%, an increase of 2.3 percentage points compared to last year.

Profit was 4.5 billion, showing a year-on-year growth of 14%.

Profit margin was 57.5%, an increase of 2.3 percentage points compared to last year.

Xiaomi Financial Report Data for Q3 2023

There may be some errors and flaws in the calculations, so I welcome any criticism and correction! The calculation method is based on previous articles and will not be discussed here. [1]

2018-2022 Xiaomi Financial Report Data

Highlights of the Financial Report

• The global monthly active users of MIUI reached 623.1 million, a YoY growth of 10.5%.
• The monthly active users of MIUI in China reached 151.9 million, a YoY growth of 7.4%.
• R&D expenses amounted to RMB 5 billion, a YoY growth of 22.0%.
• The number of R&D personnel reached 17,563, accounting for over 53% of the total employees.
• The overall gross margin, gross margin of the smartphone business, and gross margin of the IoT and consumer products for smart living all reached new historic highs.
• The overall inventory amount was RMB 36.8 billion, a YoY decrease of 30.5%, the lowest level in eleven quarters.
• Cash reserves were RMB 127.6 billion.

Shipments of Air Conditioners Exceeded 2022 Full-Year Level in the first three quarters of 2023

• In the third quarter of 2023, refrigerator shipments increased by over 95% YoY.
• Global tablet shipments grew by 120% YoY, entering the top five worldwide for the first time. In China, tablet shipments maintained the third rank.
• In the TWS earphones shipment ranking in China this quarter, Xiaomi ranked second.
• The global monthly active users of smart TVs exceeded 64 million.
• The number of IoT devices connected to the AIoT platform (excluding smartphones, tablets, and laptops) reached 698.9 million, a YoY growth of 25.2%.
• The monthly active users of the Mi Home app grew by 16.0% YoY to 84.0 million.
• Tablets maintained strong development momentum in overseas markets and China.
• In the third quarter of 2023, Xiaomi TVs maintained the top rank in terms of TV shipments in China.
• Revenue from smart home appliances increased by 11.0% from RMB 2.7 billion in the third quarter of 2022 to RMB 3.0 billion in the third quarter of 2023.
• Revenue from smart TVs and laptops decreased by 14.1% from RMB 5.8 billion in the third quarter of 2022 to RMB 5.0 billion in the third quarter of 2023, mainly due to weak market demand resulting in a decrease in smart TV shipments.
• Advertising revenue reached RMB 5.4 billion, a YoY growth of 15.7%, reaching a new historic high in revenue.
• Gaming revenue grew by 5.6% YoY to RMB 1.1 billion. Gaming revenue has achieved YoY growth for nine consecutive quarters.
• Revenue from overseas internet services increased by 35.8% YoY to RMB 2.3 billion, reaching a new historic high. Revenue from overseas internet services accounted for 30.0% of the total internet service revenue, a YoY increase of 5.8 percentage points.

Smartphones

• Xiaomi ranked among the top three global smartphone vendors for thirteen consecutive quarters.
• Smartphone shipments increased by 4.0% from 40.2 million units in the third quarter of 2022 to 41.8 million units in the third quarter of 2023.
• Xiaomi ranked among the top three smartphone vendors in 55 countries and regions, and among the top five smartphone vendors in 65 countries and regions.
• Xiaomi’s smartphone market share in Europe reached 23.3%, and in Latin America reached 18.3%. In Africa, Xiaomi’s smartphone market share reached 10.7%, a YoY increase of 4.7 percentage points. In the Middle East, market share increased to 17.7%.
• Average monthly gross merchandise volume (GMV) per Xiaomi offline store increased by over 28% YoY.
• Over 55% of high-end smartphone sales in China come from offline channels.
• The average selling price (ASP) of smartphones decreased by 5.8% from RMB 1,058.2 in the third quarter of 2022 to RMB 997.0 in the third quarter of 2023. The decrease in ASP was mainly due to strong growth in shipments in emerging markets with lower ASPs, such as Latin America, Africa, and the Middle East, partially offset by an increase in ASPs in China.

Relationship between Factory Price and Retail Price of Xiaomi Phones in Some Regions:

(According to calculated network data, there may be errors)

Argentina: Retail price ≈ 5.1 times factory price

Turkey: Retail price ≈ 3.6 times factory price

Europe: Retail price ≈ 2.3 times factory price

Egypt: Retail price ≈ 2.4 times factory price

Brazil: Retail price ≈ 2.1 times factory price

China: Retail price ≈ 1.3 times factory price

For more related content, see:

Global Shipments of Xiaomi Phones by Region and Country

Mobile Data in Financial Reports

• The mobile phone has been ranked among the top three globally for thirteen consecutive quarters.
• The shipment volume of smartphones has increased by 4.0% from 40.2 million units in the third quarter of 2022 to 41.8 million units in the third quarter of 2023.
• The shipment volume of smartphones ranks among the top three in 55 countries and regions, and among the top five in 65 countries and regions.
• The market share of smartphones in Europe has reached 23.3%; in Latin America, it has reached 18.3%. In Africa, the market share of smartphones has reached 10.7%, an increase of 4.7 percentage points year-on-year. In the Middle East, the market share has increased to 17.7%.
• The average monthly Gross Merchandise Volume (GMV) of Xiaomi home offline stores has grown by over 28% compared to the previous year.
• Over 55% of high-end smartphone sales in China come from offline channels.
• The Average Selling Price (ASP) of smartphones has decreased by 5.8% from RMB 1,058.2 per unit in the third quarter of 2022 to RMB 997.0 per unit in the third quarter of 2023. The decrease in ASP is mainly due to the strong growth in shipment volume in emerging markets such as Latin America, Africa, and the Middle East, where ASP is lower, partially offset by the increase in ASP in China.

Mobile Phone Sales Analysis

In the third quarter of 2023,

Xiaomi’s global market share is 14.1%,

Ranked second in market share history, returning to a historical high, second only to the highest value in the second quarter of 2021.

Both global market share and overseas market share have returned to second place in history.

What does a global market share of 14.1% mean?

It is equivalent to

Approximately 41.5 million units in the third quarter of 2023

≈ Approximately 46 million units in the third quarter of 2021

≈ Approximately 49 million units in the first quarter of 2021

≈ Approximately 190 million units in 2021

A picture is worth a thousand words, let’s take a look!

For a detailed analysis of market share in the third quarter, please refer to the image below:

Global Mobile Phone Shipment Data

The third-quarter mobile phone sales data is derived from the following:

Including the mobile phone sales data from various regions and countries worldwide over the past decade.

Tablet Sales

Global

China

Europe

India

Asia-Pacific

Latin America

Southeast Asia

Africa

Indonesia

Brazil

United States

Japan

Canada

Apple, Huawei, and Xiaomi financial report analysis:

More articles related to smartphones:

Xiaomi’s Development and Challenges

Xiaomi’s shipment volume is still mainly concentrated in the thousand-yuan range, but the success of the Xiaomi 14 has contributed a lot to Xiaomi’s profits.

Now Xiaomi is capable of supporting products priced between 4000-5000, and its advantages at this price point are fully highlighted.

It goes without saying that Xiaomi’s main market is below three thousand yuan, and there is currently a vacancy in the 3000-4000 yuan price range.

Originally, this price range was intended to be captured by the Redmi K series Pro, but in recent years, due to insufficient product capabilities, it has been occupied by the previous-generation flagship models from Xiaomi itself.

Now, the K70 Pro is crucial for Xiaomi to establish a foothold in the 3000-4000 yuan price range.

2024 will also undoubtedly be the most important year for Xiaomi, as it not only involves the 3000-4000 yuan price range but also relates to Xiaomi’s automotive business.

The money earned by the Xiaomi 13 and Xiaomi 14, I don’t know if it will be enough to provide funding for the automotive business. Once successful, the automotive business can also support the mobile phone business.

However, if the automotive business fails, it will take many years to recover. When there was a problem with one of Xiaomi’s many phones in the Xiaomi 11 series, it took a full two years, through the 12s and Xiaomi 13, to gradually recover.

The reputation Xiaomi gained from its after-sales service for the Xiaomi 11 series has now brought substantial benefits. Finally, there is a return on investment.

Back in the year of the Xiaomi 11, I really thought Xiaomi was going bankrupt, but now it is unexpectedly thriving.

Now, the most important thing for Xiaomi is not to make breakthroughs, but to remain steady, down-to-earth, and cautious in both phones and phone systems. Avoid being too hasty, and avoid repeating the mistakes of MIUI 12.5.

The update plan for hyperOS is just like this. It perfectly learns from the lessons of MIUI 12.5. Instead of immediately adapting to a large number of devices and causing endless bugs, it is better to focus on a few devices first and slowly progress.

Because of this update plan, it has indeed annoyed many Mi fans, but Xiaomi has still insisted on this plan, giving priority to the Xiaomi 14 series and then adapting other devices later.

Xiaomi is well aware of its own limitations. It has too many products, but not much investment in research and development. It cannot achieve full compatibility all at once.

Overall, Xiaomi’s overall sales method is also good, meeting the needs of consumers. Making money from products priced above three thousand yuan and ensuring a high shipment volume for products priced below three thousand yuan.

In general, Xiaomi makes money while Redmi has a high shipment volume.

I hope that while Xiaomi earns profits above three thousand yuan, it doesn’t forget about the phones priced below three thousand yuan.

Don’t just cut off the Redmi product line after making money, and focus solely on earning more money from high-end products. Otherwise, consumers will only be supporting the next “ex” [i.e. failed product, represented by “✘✘”].

A young dragon slayer should not become an evil dragon.

Xiaomi Q3 Financial Report and Performance Analysis

There was a slight decrease in revenue, which is very normal. Overall, it is a very good result with a single-digit decline. The annual report for the fourth quarter will definitely surpass that of 2022.

The total revenue reached 70.9 billion yuan, with a slight increase of 0.6% compared to the same period last year. Although the growth rate is small, Xiaomi finally ended the six consecutive quarters of declining performance and returned to a growth trajectory.

The main drivers of growth are the IoT business (IoT and consumer products division) and the Internet business (Internet services). The revenue decline in the core business, the smartphone division, has significantly slowed down. The combination of these factors contributed to the growth in this quarter.

To be honest, there is not much to analyze. Perhaps the most concerning aspect is how many units of the Xiaomi 14 series were sold. However, it seems that Xiaomi did not provide detailed information on this, and if I remember correctly, Q3 refers to the months of July, August, and September, while the Xiaomi 14 series was launched at the end of October. There is even sales data for the Double 11 event. I can’t really understand if this is the Q3 financial report or the Q4 report.

The total revenue reached 70.9 billion yuan, and the adjusted net profit reached 6 billion yuan, representing a growth of 182.9% compared to the same period last year. The group’s gross profit margin reached a historical high of 22.7%. Cash reserves reached a historical high of 127.6 billion yuan.

Xiaomi continues to increase its investment in research and development. R&D expenditure in this quarter reached 5 billion yuan, a year-on-year increase of 22.0%. The proportion of R&D personnel exceeded 53%.

The gross profit margin of Xiaomi smartphones reached a new high of 16.6%, with three consecutive quarters of growth. The sales volume of the Xiaomi 14 series exceeded one million units during the initial period.

The innovative businesses, such as smart electric vehicles, incurred expenses of 1.7 billion yuan.

The revenue of the IoT and consumer products division reached 20.7 billion yuan, with a gross profit margin of 17.8%, reaching a new historical high.

In this quarter, the number of IoT devices connected to Xiaomi’s AIoT platform reached 699 million. The monthly active users of the Mi Home App increased by 16% to reach 84 million.

The number of users with five or more devices connected to the AIoT platform increased by 25.9% to reach 13.7 million.

In the second quarter, smartphone revenue reached 41.649 billion yuan, a 2% decrease compared to the same period last year. This was mainly due to a decrease in average selling price (ASP), partially offset by an increase in smartphone shipments. As a result, the gross profit margin of Xiaomi smartphones increased from 8.9% in the same period last year to 16.6%.

The decrease in ASP was mainly due to strong growth in shipments in emerging markets with lower ASPs, such as Latin America, Africa, and the Middle East, partially offset by an increase in ASP in mainland China.

Xiaomi announced its plan to enter emerging markets since Q2. The results of three months are not significant, and it is better to wait for the annual report, which should provide more detailed information.

The focus of this financial report is on smartphones and AIoT, with a brief mention of the Internet business and automotive.

Smartphones: In Q3, Xiaomi’s smartphone market share in Europe reached 23.3%, in Latin America reached 18.3%, in Africa reached 10.7%, and the market share in the Middle East increased to 17.7%, with a year-on-year growth of 4.7%.

In terms of costs, the sales cost of Xiaomi smartphones decreased by 10.4% year-on-year to 34.7 billion yuan, mainly due to the decrease in smartphone sales, reduction in inventory provisions for overseas markets, and lower prices of core components.

According to third-party data, Xiaomi’s offline channels contributed to more than 55% of high-end smartphone sales in mainland China.

In Q3, Xiaomi launched several new products, including the MIX FOLD 3, K60 Pro, Xiaomi Tablet 6 Max series bundle, and Mi Band 8 Pro. They were announced during Lei Jun’s annual speech on August 14th. The MIX FOLD 3 and K60 Pro were available for purchase from August 16th, and the K60 Pro (16GB+1TB) was available from August 22nd.

If we consider Xiaomi’s definition of high-end smartphones as models priced above 3,000 yuan and exclude tablets, there was only one actual release in Q3, which is the MIX FOLD 3.

Currently, Xiaomi has around 5 models priced above 3,000 yuan available on its official website, including Redmi K60 Pro (12GB+512GB), K60 Pro Championship Edition, and K60 Pro (16GB+1TB). The Xiaomi 13 series and Xiaomi 12S series (previously participating in Xiaomi 618, their availability is uncertain, and the Xiaomi 12S Ultra has been removed from the official website in January this year). The availability of MIX FOLD 2 is also uncertain (it was discontinued and reduced in price before the launch of MIX FOLD 3, and it did not participate in Xiaomi 618). Overall, there are around 5 to 8 models available for purchase, depending on the preferences of the general public.

(VIA: Snowball)

As expected, the main drivers of high-end smartphone shipments in Q3 were still the Xiaomi 13 series or perhaps the standard version of the Xiaomi 13. The MIX FOLD 3 also had strong demand and even experienced shortages. When I visited a Xiaomi store near Taiyuan South Station, I saw someone asking if there were any MIX FOLD 3 units in stock. The store was quite small, around ten square meters, and they didn’t have any stock…

Xiaomi’s performance in Q3 this year is quite impressive. It is worth noting that Q3 marks the end of major promotions like the 618 shopping festival and the sudden surge in popularity caused by Huawei’s Pioneer Program. In addition, Single’s Day sales haven’t started yet.

Personally, I am more looking forward to Xiaomi’s annual report. After all, the sales volume of the Xiaomi 14 series in Q4 is really impressive. On November 20th, foreign media GSMArena released the latest ranking of popular smartphones. In the list, the previously launched Xiaomi 14 series continued to perform strongly. The Xiaomi 14 Pro maintained its leading position for the fourth consecutive week.

Lu Weibing personally believes that this strong growth in the third quarter is not due to overall market conditions. Xiaomi is still being dragged down by the overall market.

During Single’s Day, Xiaomi’s products performed well across all channels, with a total payment amount exceeding 22.4 billion yuan, achieving the highest sales performance in past major promotions.

AIoT: Xiaomi claims in its financial report that its AIoT is the world’s leading consumer AIoT platform. Although this may sound exaggerated, it is not far from the truth.

In Q3, Xiaomi’s revenue from IoT and consumer products reached 20.7 billion yuan, with a year-on-year growth of 8.5%. The gross profit margin reached a new historical high, increasing by 4.3 percentage points to 17.8%.

The interconnectedness of Xiaomi’s ecosystem products is more attractive. As of September 30, 2023, Xiaomi’s AIoT platform had connected 699 million IoT devices, excluding smartphones, tablets, and laptops, with a year-on-year growth of 25.2%. The number of users with five or more devices connected to the AIoT platform, excluding smartphones, tablets, and laptops, reached 13.7 million, with a year-on-year growth of 26.0%. As of September 2023, the monthly active users of the Mi Home App reached 84 million, with a year-on-year growth of 16.0%, maintaining a steady growth momentum.

Xiaomi rarel

Xiaomi Q3 2023 Financial Report: Global Market Share Growth, R&D Investment Steadily Increasing.

Xiaomi released its Q3 2023 financial report, showcasing a return to positive growth this quarter. The total revenue was 70.9 billion yuan ($10.9 billion), with adjusted net profit of 6 billion yuan ($929 million), a YoY growth of 182.9%.

Key Highlights: Xiaomi’s global smartphone market share has returned to growth, reaching 14.1%, making it the only manufacturer among the top three with positive growth in shipment volume. In terms of research and development, Xiaomi’s Q3 R&D expenses were 5 billion yuan ($773 million), a 22.0% YoY growth, with R&D personnel accounting for over 53%.

As for IoT devices, no need to say too much—they continue to lead the way. Excluding smartphones, tablets, and laptops, the number of IoT devices reached 699 million, a YoY growth of 25.2%.

Of course, Xiaomi’s IoT smart devices are about to undergo rapid development, because Xiaomi cars are coming soon. The Xiaomi 14 series has already been launched with the Xiaomi Surge S1 operating system. Xiaomi’s full ecosystem layout for home, car, and personal use is about to be completed, and the intelligent lifestyle experience brought by Xiaomi will be even more invincible, beyond your imagination…

There are a few more points worth mentioning. Expenses for marketing, promotion, and logistics have decreased slightly. In the Q3 environment, smartphones have withstood a portion of the overall decline in shipments, which, in a positive light, means a clearance of inventory. For a large company, this signifies stable operational logic and inventory management methods. Overall R&D investment has steadily increased YoY, which is a good thing.

In a situation where the global smartphone market is at a disadvantage, Xiaomi achieved positive growth in shipment volume, placing it among the top three globally. Xiaomi’s R&D expenses reached 5 billion yuan ($773 million) in Q3, a 22.0% YoY growth. Even Lei Jun would be satisfied with this answer, and Lu Weibing has truly proven his worth. Lei Jun has indeed struck gold this time.

The Enormous User Base of Xiaomi’s Automobile Manufacturing

This is one of the sources of confidence for Xiaomi’s automobile manufacturing.

Money is not the key, after all, 6 billion is relatively limited for automobile manufacturing.

The key lies in the Xiaomi users behind the 6 billion, which will form a massive customer base for automobile purchases.

It is also the ecological foundation for Xiaomi’s future construction of the relationship between cars, homes, and people.

Xiaomi: Growth in Mobile Phone and IoT Businesses, Breakthrough in Internet Services Business

Xiaomi’s prices are really cost-effective, and I have been using Xiaomi for more than ten years, but only limited to mobile phones.

As Xiaomi’s core business, the revenue of the mobile phone business increased by 13.7% quarter-on-quarter this quarter, with a gross profit margin of 16.6%, an increase of 7.7 percentage points year-on-year, and consecutive quarter-on-quarter growth for three quarters. In terms of smartphone shipments, Xiaomi’s global smartphone shipments have doubled quarter-on-quarter, reaching a new high of 41.8 million units. This quarter, Xiaomi’s global market share of smartphones reached 14.1%, ranking among the top three globally for 13 consecutive quarters, and among the top three in 55 markets and top five in 65 markets.

In the third quarter, Xiaomi’s IoT and consumer products revenue reached 20.7 billion yuan, an increase of 8.5% year-on-year. The gross profit margin reached a historical high, increasing by 4.3 percentage points to 17.8% year-on-year. As of September 30, 2023, Xiaomi’s AIoT platform has connected 699 million IoT devices (excluding smartphones, tablets, and laptops), an increase of 25.2% year-on-year. The number of users with 5 or more devices connected to the AIoT platform (excluding smartphones, tablets, and laptops) reached 13.7 million, an increase of 26.0% year-on-year. As of September 2023, the monthly active users of the Mi Home app reached 84 million, an increase of 16.0% year-on-year.

In terms of internet services business, Q3 business revenue achieved a new breakthrough, reaching 7.8 billion yuan, with a gross profit margin of 74.4%, an increase of 2.3 percentage points year-on-year. Xiaomi continues to refresh its records in terms of user scale in the global and mainland China markets, with monthly active users of MIUI reaching 623 million and 152 million, achieving year-on-year growth of 10.5% and 7.4% respectively.