On August 22, Xiaomi announced its first financial report since its listing. According to it, thanks to the double increase in sales volume and average selling price, the income of Xiaomi smartphone business reached 30.501 billion yuan ($4.46 billion) in the second quarter of 2018, a year-on-year increase of 58.7%.
According to IDC data, Xiaomi is the world’s fourth largest smartphone maker. The financial report also shows that in the second quarter of 2018, Xiaomi’s smartphone sales reached 32 million units, a year-on-year increase of 43.9%.
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However, the same document reveals another interesting thing. The company’s smartphones have been priced higher by 25%. The increase in the average selling price of smartphones is mainly due to the strong sales of mid-range and high-end flagship models such as the Xiaomi Mi MIX 2S and Xiaomi Mi 8 series in the Chinese market. The latter sold 1.1 million units in less than a month. In this sense, we can state the structure of Xiaomi’s sales changed. If previously the company was selling more Redmi line devices, now the Mi series handsets dominate.
Say, the cheapest Xiaomi phone is the Redmi 6A, which was available at 599 yuan ($87). By the way, today it has got an official price cut of 50 yuan ($7). On the contrary, the most expensive model is considered to be the Xiaomi Mi 8 Explorer Edition, which costs 3699 yuan ($540).
Xiaomi has seized the trend of consumer preferences in China’s smartphone market. So it will optimize product mix and continue to increase the proportion of high-end models in the market. It will be a key strategy in 2018, which will run to remarkable results.