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Xiaomi exceeded expectations in the second quarter
Xiaomi has stepped up in all areas in the past three months, and their new car manufacturing division also shows great potential.
The release of business results for a given quarter is always an exciting day, especially for shareholders who eagerly await results that exceed expectations. And Xiaomi succeeded in this, and at the same time they exceeded the expectations of analysts.
The mobile telephony market has recovered a bit after a few dry periods, which is also evident in the turnover of Xiaomi's telephony division. Between April and June, they generated approximately €5.98 billion in revenue, which is 27 % more than the same period in 2023. Together with the POCO and Redmi brands, the latter usually the best-selling brand each year, they shipped 42.2 million phones.
The very important news is that they have improved their business in the premium segment (phones over €380), which represents 22.1 % of all phones shipped. These are encouraging results, especially since some of the best models, such as the Mix Fold foldable phones, are not yet available outside of the Chinese market.
Xiaomi currently ranks third in the world ranking of phone manufacturers, just behind Apple and Samsung. They own 14.8 % of the market. The Xiaomi ecosystem has more than 676 million users, which is 11.5 % more than last year. A very interesting fact is the fact that they have more users outside the domestic market, where their devices are used by "only" 164 million users.
Total turnover increased by 32 %, namely to 11.2 billion euros, which is a few percent more than analysts' expectations. Phones contributed a good half of that.
In 2021, Xiaomi decided to diversify its offer. Mobile telephony remained the focus, and a division was also established for the development and production of cars. The electric car Xiaomi SU7 began to be delivered in April this year, so far 27,307 units have been sold, which brought an additional 828 million euros to the company's coffers. The automotive division will continue to operate at a loss for some time, which the company is aware of, but they remain optimistic that they will reach the initial target of 120,000 cars shipped by the end of the year.
