Xiaomi Shows Strong Growth Momentum in Q3 2020 Financial Report

(Source: Xiaomi)

Smartphone maker Xiaomi revealed strong growth momentum in the third quarter of 2020 and posted record high quarterly revenue of 72.2 billion yuan ($10.98 billion), according to its unaudited financial report announced Tuesday. 

In Q3 2020, Xiaomi’s smartphone business grew significantly in both revenue and shipments, and in both mainland China and in overseas markets. Smartphone revenue amounted to 47.6 billion yuan ($7.24 billion) in the quarter, representing a 47.5% year-over-year increase, while smartphone shipments grew by 45.3%, totaling 46.6 million units.

Xiaomi’s smartphone shipments market share in mainland China climbed to 12.6% in the third quarter of 2020 from 9% in the same period of 2019, maintaining a top four position, according to a Canalys report. During the 2020 Singles’ Day shopping festival in China, Xiaomi ranked first in sales among Android smartphones on Tmall.com, JD.com and Suning.com. 

According to Canalys, Xiaomi’s smartphone shipments in Western Europe increased 107.3% year-over-year this quarter, achieving a market share of 13.3% and ranking among the top three in the region for the first time. In particular, Xiaomi retained the top spot in Spain in smartphone shipments for the third consecutive quarter with a 33.9% market share. 

Xiaomi’s Redmi, notably, accounted for three of the world’s top 10 best-selling smartphones in the third quarter of 2020.

Xiaomi’s Redmi (Source: Xiaomi)

In Q3 2020, the company’s revenue from overseas markets increased 52.1% year-over-year to 39.8 billion yuan ($6.05 billion), accounting for 55.1% of total revenue, marking record high quarterly overseas revenue and overseas revenue contribution to total revenue.

Xiaomi significantly broadened its IoT (Internet of Things) and AIoT (Artificial Intelligence of Things) product portfolio in the quarter. Leveraging its large user base and the “Smartphone × AIoT” strategy, the company’s revenue from IoT and lifestyle products segment amounted to 18.1 billion yuan ($2.75 billion) in Q3 2020, representing 16.1% year-over-year growth. Revenue from IoT and lifestyle products in overseas markets surged by 56.2% year-over-year, reaching a record high.

According to an IDC report, Xiaomi ranked among the top 3 in terms of shipments last quarter in various categories in mainland China, including smart door locks, air purifiers, robot vacuum cleaners, TWS earbuds and wearable bands, etc. 

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Xiaomi continued its leadership in the mainland China smart TV market and introduced a number of flagship products within the Mi TV Master Series in Q3 2020. Global shipments of Xiaomi’s Smart TVs reached 3.1 million units, and Xiaomi ranked No.1 in mainland China for TV shipments for the seventh consecutive quarter and maintained a top five position globally, according to All View Cloud data.

As of Sept. 30, 2020, the number of connected IoT devices (excluding smartphones and laptops) on Xiaomi’s AIoT platform grew 35.8%, reaching 289.5 million units. The number of users who have five or more devices connected to Xiaomi’s AIoT platform (excluding smartphones and laptops) reached 5.6 million, representing 59% growth. AI assistant Xiao’Ai had 78.4 million Monthly Active Users (MAU) in September 2020, representing a year-over-year increase of 35.5%. At the same time, the MAUs of Mi Home App reached 43.1 million.