Xiaomi Revenues Lift 27% In Q1, As IoT, Internet Services Offset Slower Growth

Xiaomi said revenues for the first quarter rose 27.2 percent from the year before to CNY 43.8 billion, and that its operating profit lifted 12.5 percent to CNY 3.7 billion. The net profit however dipped almost 6 percent lower to CNY 3.2 billion.

Slower smartphone revenue growth

Revenue growth at the company’s smartphone segment slowed to 16.2 percent, for revenues of CNY 27 billion. Shipments totaled 27.9 million, a bit higher than the earlier estimate of 27.5 million.

The average selling price (ASP) for smartphones sold in mainland China leaped almost 30 percent; for overseas, growth went to 12.1 percent. Xiaomi said that the general smartphone market in mainland China was challenging during the quarter but that it hoped government policies would help improve the economic situation, such as a reduction in the VAT rate.

Strong growth at IoT/lifesyle, internet services

At IoT and lifestyle products, revenues soared 56.5 percent to CNY 12 billion. The company said it will continue to invest in smart TVs, with global shipments for the devices up almost 100 percent to 2.6 million.

Internet services revenue rose 31.8 percent to CNY 4.3 billion, with revenues up 21.8 percent to CNY 2.3 billion for advertising and 6.8 percent higher to CNY 823.1 million from gaming. Other internet value-added services grew 96.4 percent to CNY 1.2 billion, boosted by the company’s internet finance business and Youpin e-commerce platform.

The number of users for the company’s Mi user interface advanced by 37.3 percent to 260.9 million while the number of connected IoT devices (excluding smartphones and laptops) on its IoT platform grew 70 percent to 171 million units. The company’s AI assistant had over 45.5 million monthly active users in March, a jump of over 247 percent.―Telecompaper