Chinese construction giant Xiaomi recently released its second quarter financial report for 2020. According to the company, its revenue reached 53.54 billion yuan ($ 7.7 billion), which is higher than market expectation of 51.4 billion yuan ($ 7.4 billion). Over the same period last year, the company’s revenue reached 51.951 billion yuan ($ 7.5 billion), a slight decrease from its recent value. For its net profit, Xiaomi rose 3.37 billion yuan for the second quarter of 2020. Taking into account its 3.635 billion yuan in the same period last year, it records an annual decrease of 7.2%.
The financial report also shows that in the second quarter of 2020, the global epidemic had a major impact on the overall smartphone market. Xiaomi’s smartphone revenue for the quarter was $ 31.6 billion ($ 4.5 billion), down 1.2% year-on-year. Xiaomi smartphone sales in the quarter were 28.3 million units.
The Chinese manufacturer has benefited from the growing share of mobile phone sales from medium to high. Xiaomi’s global average selling price (“ASP”) of smartphones continued to rise, rising by 11.8% year on year and 7.5% month on month. According to Canalys statistics, in the second quarter of 2020, Xiaomi’s global smartphone shipments are ranked fourth in the world, with a market share of 10.1%.
Other Xiaomi companies
Xiaomi Group’s Internet service revenue reached 5.9 billion yuan ($ 856 million), an annual increase of 29.0%, accounting for 11.0% of total revenue. Advertising, games and other value-added services have grown.
In June 2020, monthly active MIUI users increased to 343.5 million, an annual increase of 23.3%. Among them, the monthly active MIUI users in mainland China are 109.7 million.
Xiaomi’s advertising revenue reached 3.1 billion yuan ($ 450 million), an annual increase of 23.2%. In the second quarter of 2020, gaming revenue reached 1 billion yuan ($ 145 million), an increase of 54.5% year on year. This is mainly due to the good performance of the Chinese mainland toy market in the second quarter.
In addition, revenue from other value-added Internet services reached 1.8 billion yuan ($ 261 million), an annual increase of 27.0%. This is mainly due to the growth of its financial activities, the Youpin e-commerce platform and the revenue from television.
The financial report also shows that IoT and consumer product revenues are $ 15.3 billion ($ 2.2 billion). This is an increase of 2.1% from the same period last year.
Revenue from sales of smart TVs and laptops fell 12.2% from 5.5 billion yuan ($ 798 million) in the second quarter of 2019 to 4.8 billion yuan ($ 697 million) in the second quarter of 2020.
In the second quarter, global TV market shipments slowed overall and Xiaomi’s global smart TV shipments reached another 2.8 million units, maintaining an annual increase. In addition, Xiaomi’s market revenue reached 24 billion yuan ($ 3.4 billion). This is an annual increase of 10.0%, representing 44.9% of total revenue.
Xiaomi performance outside of China
In the second quarter of 2020, according to Canalys, Xiaomi’s smartphone shipments to Europe increased by 64.9% year on year. It has a market share of 16.8% and is ranked in the top three for the first time. In Western Europe, Xiaomi’s smartphone shipments increased by 115.9% year on year, with a market share of 12.4%. In addition, Xiaomi smartphone shipments represent 30.7% of the Indian smartphone market. In Latin America, the Middle East and Africa, Xiaomi’s smartphone shipments increased by 99.4%, 66.3% and 113.0% year-on-year, respectively.