The astounding success of Xiaomi is amazing! The company's popularity and earnings are growing across all metrics!
Xiaomi has announced its initial consolidated financial results for the first quarter of 2021. The Chinese manufacturer achieved the best ever revenue and profit margin.
In the first quarter of 2021, Xiaomi's total revenue and adjusted net income significantly exceeded market expectations. Total revenue for this period was 76.9 billion yuan ($ 12.0 billion), up 54.7% from last year. Adjusted net income for the period was 6.1 billion yuan ($ 0.95 billion), up 163.8% year over year.
Global smartphone sales ranked the company in the top three manufacturers. Xiaomi has continued to improve its competitiveness in the premium smartphone market. In the first quarter of 2021, smartphone sales grew and smartphone revenue increased 69.8% year on year to 51.5 billion yuan ($ 8.1 billion). Global smartphone shipments during this period reached 49.4 million units, and the gross margin for the smartphone business was 12.9%. According to Canalys, the company maintained its third largest smartphone sales in the world in the quarter with a market share of 14.1%.
Xiaomi's smartphone business in mainland China also maintained its rapid growth. According to Canalys, in the first quarter of 2021 Xiaomi climbed to the 4th position with a market share of 14.6%.
According to third-party companies, Xiaomi's share of the online smartphone market in mainland China rose to 38.0% in the first quarter of 2021 from 18.5% in the first quarter of 2020. Meanwhile, Xiaomi has also increased its presence in offline retail in mainland China. As of April 30, 2021, the number of the company's retail stores exceeded 5,500, an increase of more than 2,300 stores compared to December 31, 2020.
A wide range of premium products have contributed to the strong growth of Xiaomi in the smartphone market from this segment. In the first quarter of this year, global sales of the group's smartphones at retail prices equal to or above 3,000 yuan in mainland China and € 300 or the equivalent in overseas markets exceeded 4 million units. In addition, according to other companies, Xiaomi's share of the smartphone market in the range of RMB 4,000 to RMB 6,000 in mainland China rose to 16.1% in the first quarter of 2021 from 5.5% in the first quarter of 2020.
Excellent results from the "Smartphone × AIoT" strategy
In the first quarter of 2021, the main strategy of Xiaomi "Smartphone × AIoT" contributed to the achievement of excellent results. The IoT and lifestyle segment performed well, with revenues growing 40.5% year on year to RMB 18.2 billion ($ 2.85 billion). In the first quarter of 2021, global sales of Xiaomi smart TVs reached 2.6 million units. According to All View Cloud ("AVC"), the company's TV shipments ranked first in mainland China for the 9th consecutive quarter and remained in the top five in the world.
In addition, Xiaomi's widescreen smart TVs have continued to gain widespread acceptance in the market. According to AVC, Xiaomi and Redmi TVs continue to rank # 1 in terms of retail sales for models over 70 inches in mainland China with a 29.0% market share as retail sales grew by more than 160% yoy.
The IoT and products segment from the Xiaomi ecosystem has also continued its rapid growth in overseas markets. Revenue from these products in overseas markets increased 81.1% year-on-year for the quarter. Electric scooters, air purifiers, Mi Box and other products were very popular.
As of March 31, 2021, the number of connected IoT devices (excluding smartphones and laptops) on the AIoT platform reached 351.1 million units. The number of users with five or more devices connected to our AIoT platform (excluding smartphones and laptops) reached 6.8 million, up 48.9% year on year.
Technological innovation as the basis for a better life
Xiaomi's continuous pursuit of advanced technology and innovation is at the core of the group's growth and growth. In the first quarter of 2021, Xiaomi reported R&D spending of 3.0 billion yuan ($ 0.47 billion), up 61.0% from the first quarter of the previous year. Band provides increased strength, ultra-fast loading.