The quarterly results for Chinese tech giant Xiaomi were strong.
Total revenue rose 27% year on year to RMB75.5 billion, which is £7.4 billion.
Most importantly, its adjusted net profit rose to an all-time high of RMB 6.5 bln, or £640m, which doubled year on year despite heavy investments in its smart electric vehicle business.
The strong performance shows Xiaomi’s successful strategies that drive scale and profitability across its core businesses: smartphones, Internet of Things, lifestyle products, and internet services.
Gross profit margin rose to 22.3%, up 2.8 percentage points year on year.
Smartphone shipments were up 33.7% to 40.6 million units, marking the third consecutive quarter of growth.
Smartphone revenue also continued its growth streak for the fourth quarter in a row, coming in at RMB46.5 billion.
The IoT and lifestyle segment is also doing well, with record revenue of RMB20.4 billion, up 21% year over year, driven by innovation in smart home appliances.
Internet services revenue also reached a record of RMB 8 billion, up 14.5%, as Xiaomi’s global user base continued to grow significantly.
This diversified success allowed Xiaomi to offset increased R&D spending, which included RMB 2.3 billion for its smart EV venture.
The first high-performance Xiaomi SU7 Series sedan marked a big step in Xiaomi’s smart EV ambition.
The SU7, praised for its eco-friendly technology, received over 88,000 orders in just a few weeks, prompting Xiaomi to target 100,000 deliveries in 2024 alone.
Xiaomi is now in the process of emerging as a powerful tech conglomerate that makes just the right kind of calculated gambles to make sure of long-term growth by deftly balancing innovation with profitability in smartphones, IoT, the internet, and now automobiles.
Its strong quarterly results confirm this diversification strategy’s early success.
Xiaomi’s revenue grew by 27% year-on-year in Q1 2024, reaching RMB 75.5 billion, which is approximately £7.4 billion.
Xiaomi’s adjusted net profit for Q1 2024 reached an all-time high of RMB 6.5 billion, or £640 million, doubling year-on-year despite significant investments in its smart electric vehicle business.
Xiaomi’s smartphone shipments increased by 33.7%, totaling 40.6 million units in Q1 2024. This marked the third consecutive quarter of growth in smartphone shipments.
The IoT and lifestyle segment achieved record revenue of RMB 20.4 billion, up 21% year-over-year, driven by innovation in smart home appliances.
Also Read: Xiaomi Sold Over 3 Million Redmi 12 Units in India
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