Xiaomi released its financial report for the second quarter of 2018, also its first post-IPO financial report on August 22. Total revenue reached 45.24 billion yuan ($6.6 billion), a year-on-year increase of 68.3 percent.
Robust growth of different businesses is showing in the numbers. The sales volume and average prices of Xiaomi smartphones have largely increased. In the second quarter of 2018, the smartphone sales reached 32 million units, with a year-on-year increase of 43.9 percent.
Due to the excellent performance of Xiaomi’s high-end flagships smartphones, the average price of Xiaomi smartphones sold in mainland China increased by over 25 percent. Revenue driven by the smartphone business reached 30.50 billion yuan, with a year-on-year increase of 58.7 percent.
According to CNBC, Xiaomi has grown by creating mid-to-low-priced smartphones with high specifications, but it needs to expand into a higher priced category in order to boost revenue.
Sales of Internet of things (IoT) and other consumer products also grew rapidly, with second-quarter revenue in this segment reaching 10.38 billion yuan, marking a year-on-year increase of 104.3 percent. The main contributors are IoT products such as Xiaomi TV and Xiaomi laptop, with their sales revenue reaching 4.18 billion yuan. The global sales of Xiaomi TV surged by 350 percent year-on-year, while also ranking first in the Chinese market.
In the second quarter of 2018, Xiaomi’s Internet service revenue increased by 63.6 percent year-on-year to 3.96 billion yuan. During the same period, monthly active users (MAU) of the MIUI increased by 41.7 percent year-on-year to 207 million, while MAU of Xiaomi’s AI voice assistant Xiao Ai also reached 26 million. “IoT+AI” became a major source of Xiaomi’s Internet service, further optimizing user experience and enhancing its product competitiveness.
In the global markets, Xiaomi’s smartphones continued to maintain its top position in India, and the company saw the shipments in Western Europe increase over 27 folds compared to the same period last year. Xiaomi’s Mi brand smartphones also ranked among the top five in 25 countries and regions around the world in terms of sales for Q2 2018.