????Xinhua Finance, Beijing, August 26th, Xiaomi Group26 daysAnnounced 2020 interim results, revenue and profit performance exceeded market expectations. Total revenue in the first half of the year reached RMB 103.20 billion, an increase of 7.9% year-on-year; adjusted net profit 5.70 billion yuan.
Xiaomi Group2020 Q2 revenue RMB 53.50 billion yuan, an increase of 7.7%; adjusted net profit RMB 3.40 billion yuan, an increase of 46.6%.
????In the second quarter of 2020, Xiaomi sold 28.30 million mobile phones worldwide, ranking fourth in the world in market share. Xiaomi mobile phones continued to gain a foothold in the high-end market, with the global average selling price of smartphones increasing by 11.8%. In overseas markets, Xiaomi’s high-end mobile phone shipments priced at 300 euros and above increased by 99.2% year-on-year in the second quarter. The European market increased by 64.9% year-on-year, entering the top three for the first time, and the Spanish smartphone market topped the market for two consecutive quarters.
????Xiaomi AIoT business continues to lead the global smart life. As of June 30, 2020, the number of connected devices on Xiaomi IoT platform reached 271 million, an increase of 38.3% year-on-year. In June 2020, MAU users reached 78.40 million, an increase of 57.1% year-on-year.
????Internet service growth is solid. In the second quarter of 2020, internet service revenue reached RMB 5.90 billion, an increase of 29% year-on-year. In June 2020, MIUI’s global monthly active users reached 340 million, an increase of 23.3% year-on-year.
????In the new decade, Xiaomi has upgraded its core strategy to "Mobile X AIoT", which is more of a multiplier effect and a unified whole of mutual blessing. Focusing on the core business of mobile phones, AIoT layout builds a better life, making Xiaomi a true leader in the future lifestyle.
????The mobile phone business has firmly established a high-end market share and ranks among the top four in the world
????In the second quarter of 2020, despite the impact of the epidemic on the global mobile phone market, Xiaomi’s smartphone business remained stable, with revenue of RMB 31.60 billion yuan and mobile phone sales 28.30 million. According to Canalys statistics, in the second quarter of 2020, Xiaomi’s global smartphone shipments continued to rank fourth in the world, with a market share of 10.1%.
????Xiaomi Group continues to promote the mobile phone dual brand strategy. The Xiaomi brand has firmly established itself in the high-end market, and the proportion of mid-to-high-end mobile phone sales has increased. The average unit price of smartphones has increased by 11.8% year-on-year. During the JD.com 618 shopping festival, Xiaomi 10 won the sales champion in the 3500-4500 price range. On August 11, Xiaomi 10 Supreme Commemorative Edition was launched, equipped with cutting-edge 120W wired fast charging and 50W wireless flash charging. The battery adopts the industry’s first mass-produced graphene-based lithium-ion battery, and once again won the world’s first overall score of DXOMARK camera with a total score of 130 points, making it the best flagship mobile phone in the world to take pictures. Redmi continues to promote the popularization of 5G mobile phones. In May, Canalys released data showing that three of the top ten best-selling models in the world for Quarter 1 in 2020 are Redmi models, and Redmi is also the only domestic mobile phone brand on the list.
????AIoT leads the future smart lifestyle
????During the reporting period, Xiaomi’s AIoT platform lead was further expanded. As of June 30, 2020, the number of connected IoT devices (excluding smartphones and laptops) on the IoT platform reached 271 million, an increase of 38.3% year-on-year. The number of users with five or more devices connected to the Xiaomi IoT platform increased to 5.10 million, an increase of 63.9% year-on-year.
????On June 30, 2020, the number of monthly active users of the intelligent assistant "Xiao Ai Classmate" reached 78.40 million, an increase of 57.1% year-on-year, continuing to become one of the most active artificial intelligence voice interaction platforms in China. The openness of Xiaomi’s smart life scenarios continues to increase. In June 2020, the number of monthly active users of Mijia App reached 40.80 million, an increase of 34.1% year-on-year. Among them, 67.9% of users are from non-Xiaomi mobile phone users.
????In August 2020, Xiaomi also released the Xiaomi Magic Share function that supports collaborative interaction between Xiaomi devices. This function supports cross-screen collaboration between mobile phones and notebooks, one-click transfer of video calls with multiple end points, relay transmission of music and picture data, etc. Continuous smart home, wearable devices, and end points with screens. Bring richer scene applications and a more convenient and elegant interconnection experience. This is an upgrade of the smart collaboration capabilities of mobile phones and Internet of Things devices.
????In the new decade, focusing on the core of the mobile phone business, the AIoT ecosystem will penetrate multiple scenarios, win more users, obtain massive data, and become the moat of Xiaomi’s business model, making Xiaomi a leader in the future lifestyle.
????IoT and consumer goods are growing steadily, and smart TVs rank first in China
????Although the epidemic affected the pace of production, transportation, sales and product release in the first half of 2020, Xiaomi’s IoT and consumer goods business withstood pressure and maintained growth. Revenue reached RMB 15.30 billion during the reporting period, an increase of 2.1% year-on-year.
????Xiaomi Smart TV continues to maintain its leading position in the industry. In the second quarter of 2020, Xiaomi Smart TV shipped 2.80 million units worldwide. According to the statistics of Orville Cloud Network, as of the second quarter of 2020, Xiaomi TV shipments ranked first in the Chinese mainland market for the sixth consecutive quarter. Xiaomi Smart TV is also becoming more and more popular in overseas markets. Xiaomi Smart TV entered Poland, France, Italy and other markets in the second quarter. While maintaining the industry’s leading position in shipments, Xiaomi Smart TV continues to improve technical investment and explore the high-end market. In July 2020, Xiaomi launched the first ultra-high-end TV – the Master Series 65-inch OLED TV. In August of the same year, Xiaomi released the second ultra-high-end product in the Xiaomi TV Master series, Xiaomi Transparent TV, which is the world’s first mass-produced transparent OLED TV. The subversive transparent form represents Xiaomi’s exploration of the ultimate form of future TV.
????Xiaomi’s IoT business is also constantly exploring overseas markets. In July 2020, Xiaomi held the first global press conference of the Xiaomi ecological chain, launching to global users including the Mi Band 5, the Mi True Wireless Headset 2 Basic, and the Xiaomi electric scooter Pro2 in cooperation with the Mercedes-AMG Petronas F1 team.
????Internet services steady growth diversification trend further strengthened
????In the second quarter of 2020, Xiaomi’s internet service revenue grew strongly, reaching RMB 5.90 billion, an increase of 29% year-on-year.
????In June 2020, MIUI monthly active users reached 340 million, an increase of 23.3% year-on-year.
????Internet advertising business continued to grow. In the second quarter of 2020, advertising revenue reached 3.10 billion yuan, an increase of 23.2% year-on-year. Showing the vitality of Xiaomi’s Internet commercialization under different economic conditions.
????In the second quarter of 2020, the diversification of Xiaomi’s Internet business continued to advance, and the vitality of emerging businesses continued to break out. The emerging business is internet services other than Chinese mainland smartphone advertising and games, including TV Internet, Youpin e-commerce, financial technology and overseas Internet. The revenue of this part of the business increased by 39.5% year-on-year, accounting for 39% of the total revenue of internet services. Among them, the TV Internet business grew strongly. As of June 2020, the MAU users of smart TVs and Xiaomi boxes 32 million, an increase of 41.8% year-on-year, and the number of Xiaomi TV paid users 4 million, an increase of 33.1% year-on-year.
????Overseas market revenue grew steadily, and the European market entered the top three
????In the second quarter of 2020, Xiaomi’s overseas market revenue reached RMB 24 billion, an increase of 10% year-on-year. According to Canalys data, in the second quarter of 2020, Xiaomi ranked among the top five in smartphone market share in a total of 50 countries and regions around the world, and ranked among the top three in 25 markets. Xiaomi’s mobile phone business is still growing in major markets, especially in the European market.
????According to Canalys data, in the second quarter of 2020, Xiaomi’s smartphone shipments in the European market rose against the trend, growing by 64.9% year-on-year, with a market share of 16.8%, making it the top three smartphone manufacturers in Europe for the first time.
????Xiaomi’s smartphone shipments in the Western European market increased by 115.9% year-on-year, the first growth rate among major manufacturers. Among them, the smartphone market share in Spain remained the first for two consecutive quarters, growing by 150.6%, and the market share reached 36.8%. The market share of smartphone shipments in France ranked second, and the top four in Germany and Italy.
????According to IDC statistics, in the second quarter of 2020, Xiaomi smartphones maintained the first shipment volume in India for 12 consecutive quarters. According to Canalys statistics, Xiaomi’s share in the Indian smartphone market exceeded 30.7% in the quarter. At the same time, Xiaomi’s globalization breadth further expanded. In the second quarter of 2020, Xiaomi’s shipments of smartphones in Latin America, the Middle East, and Africa increased by 99.4%, 66.3%, and 113% respectively, ranking among the top five in Africa and the top four in the Middle East and Latin America.
????JP Morgan Chase commented that Xiaomi’s rapid expansion of market share in the European market is conducive to attracting high-income user groups, further increasing the average selling price of mobile phones, and broadening the space for internet service monetization.
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