Emir Bardakçı
Xiaomi Group’s interim financial report for the first half of 2024 paints a picture of remarkable success and rapid growth across its core business segments, reaffirming the company’s global prominence in smartphones, AIoT, and smart devices. With strong financial performance, record-breaking shipments, and aggressive expansion plans, Xiaomi is positioning itself for a dominant market presence for the rest of the year.
Financial Highlights: Revenue and Profit Surge
Xiaomi’s operating income for the first six months of 2024 surged to 164.395 billion yuan, marking an impressive 29.62% year-on-year increase. This rapid revenue growth was accompanied by a 17.86% rise in net profit, which totaled 9.28 billion yuan. These results signal Xiaomi’s ability to capitalize on its diverse product portfolio and global expansion.
Dominating the Mobile Phone and AIoT Sectors
The mobile phone x AIoT segment continues to serve as Xiaomi’s backbone, generating 158 billion yuan in revenue—up 24.6% from 2023. Notably, smartphone shipments reached a remarkable 82.2 million units, contributing significantly to the company’s overall financial performance. Revenue from smartphones grew by 29.9%, from 71.6 billion yuan in the same period last year to an astounding 93 billion yuan in the first half of 2024.
Xiaomi’s IoT and consumer product sector, including smart home appliances and wearable products, also experienced strong growth. Revenue in this category saw a 20.6% year-on-year increase, totaling 47.1 billion yuan. The number of connected IoT devices exceeded 822.2 million, representing a 25.6% rise compared to last year.
Innovative Business Divisions See Promising Growth
Beyond its established mobile and IoT dominance, Xiaomi has also made strides in innovative businesses, including smart electric vehicles. These divisions brought in 6.4 billion yuan in revenue, underscoring Xiaomi’s strategic investments in emerging technologies. Xiaomi’s foray into electric vehicles saw the delivery of 27,367 units in just six months, highlighting its successful diversification strategy.
The Rise of Wearables and Smart Home Appliances
Wearables also had a stellar performance in the first half of the year, with revenue soaring by 37.4% year-on-year. This surge was largely driven by the increasing popularity of smartwatches and TWS headphones across global markets.
Similarly, Xiaomi’s smart home appliances enjoyed an impressive 40.5% year-on-year growth. The rise was particularly attributed to increased shipments of air conditioners, refrigerators, and washing machines within China’s mainland market.
Global Expansion and User Growth
Xiaomi’s footprint continues to expand, both in terms of users and physical retail presence. The company’s global monthly active users now total 675.8 million, an 11.5% year-on-year increase. Xiaomi’s push toward new retail strategies has led to over 12,000 offline stores in mainland China alone as of June 30, 2024.
Meanwhile, Xiaomi’s overseas market revenue reached 75.9 billion yuan, representing 46.2% of total revenue, highlighting the brand’s strong international presence. Its expansion into diverse regions has paid off, positioning Xiaomi as a true global leader in consumer electronics.
Conclusion: A Pivotal Year of Innovation
2024 is shaping up to be a landmark year for Xiaomi Group, with explosive revenue growth, groundbreaking product launches, and expansion into new sectors like electric vehicles. The company’s mobile phone and AIoT segments continue to thrive, supported by strategic investments in innovation and retail. As Xiaomi expands its ecosystem globally, it’s evident that the company’s vision to build an interconnected world of smart devices is closer to becoming a reality. The next six months will be critical as Xiaomi pushes forward into new territories and solidifies its position in key markets around the world.
