Xiaomi reports double-digit growth for the third straight quarter in Q2

The Chinese tech giant said its three core businesses outperformed market expectations.

Photo from Xiaomi

What fueled Xiaomi’s Q2 performance?

Xiaomi has reported a double-digit year-over-year (YoY) revenue growth for the third consecutive quarter in 2024 Q2, with revenue reaching RMB 88.9 billion (around PHP 698.3 billion), a 32 percent YoY increase. The adjusted net profit was RMB 6.2 billion (around PHP 48.6 billion), up 20.1 percent, while its overall gross profit margin remained strong at 20.7 percent.

Xiaomi Q2 2024 Overall Business Highlights

The company said its three core businesses — smartphones, IoT and lifestyle products, and internet services — outperformed market expectations coupled with increased revenues from its smart EV business and other new initiatives.

In Q2, Xiaomi's global smartphone shipments reached 42.2 million units, up 28.1 percent YoY. Its smartphone business also reported a Q2 revenue of RMB 46.5 billion (around PHP 365.655 billion), an increase of 27.1 percent YoY.

Citing Canalys, Xiaomi said it has maintained its top-three global smartphone position for 16 quarters. With a 14.6 percent market share, it is considered to be the fastest-growing brand among the top five. In Q2, the brand ranked among the top three in 58 countries and regions, with strong growth in Latin America, Southeast Asia, the Middle East, and Africa.

Xiaomi's IoT and lifestyle products business, meanwhile, maintained its upward trajectory in Q2, posting record-high revenue of RMB 26.8 billion (around PHP 210.2 billion), up 20.3 percent YoY. The smart large home appliance segment also saw its revenue increase by 38.7 percent YoY.

Canalys has reported that Xiaomi's tablet shipments doubled YoY, making it the fastest-growing brand. Its wearables were No. 3 globally, and No. 2 in China, while its TWS earbuds were No. 3 globally and No. 1 in China.

In Q2, Xiaomi said its air-conditioner shipments exceeded 3.3 million units, up over 40 percent YoY. During the period, the company said its refrigerators and washing machines also posted significant growth, with shipments surpassing 600,000 units and 400,000 units respectively.

Xiaomi’s internet services also sustained its rapid growth, with revenue increasing by 11 percent to RMB 8.3 billion (around PHP 65.281 billion). Overseas internet services revenue also increased 32.9 percent YoY to RMB 2.7 billion (around PHP 21.249 billion) in Q2, raising its share of total Internet services revenue to 32.1%.

In terms of smart electric vehicles (EV), Xiaomi said it has recorded a revenue of RMB 6.4 billion (around PHP 50.368 billion) in Q2 as it ramps up production and delivery of the Xiaomi SU7 Series.

In Q2, the deliveries of the Xiaomi SU7 Series reached 27,307 vehicles, with monthly deliveries surpassing 10,000 units for two consecutive months.

Xiaomi EV Factory has doubled shifts to reach its 100,000 vehicle target by November. They aim for 120,000 Xiaomi SU7 deliveries in 2024.

As of June, the company has opened 87 smart EV sales centers in China.

Advancing AI

Xiaomi continued to invest in AI for its "Human x Car x Home" ecosystem. R&D expenses reached RMB 5.5 billion (around PHP 43.3 billion) in Q2 (up 20.7 percent). Xiaomi AI is making breakthroughs in smart EVs, supporting Autopilot, parking, and voice interaction.

In terms of smartphone products, Xiaomi said it has enhanced the multimodal recognition and understanding capabilities of its AI assistant, bringing users a host of features including AI document analytics and AI video generation.

According to third-party data, Xiaomi's premium smartphones accounted for 22.1 percent of mainland China shipments in Q2 2024 (up from 20.1 percent). The Xiaomi MIX Fold 4 and MIX Flip, launched in July, have exceeded expectations and boosted Xiaomi's premium reputation. The MIX Flip's unique design and AI offline translation features have received praise.

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