Chinese manufacturing giant, Xiaomi, recently released its second quarter financial report for 2020. According to the company, its revenue hit 53.54 billion yuan ($7.7 billion) which is higher than the market expectation of 51.4 billion yuan ($7.4 billion). Within the same period of last year, the company’s revenue hit 51.951 billion yuan ($7.5 billion), which is a small decrease from its recent value. For its net profit, Xiaomi racked up 3.37 billion yuan for Q2 2020. Considering its 3.635 billion yuan in the same period last year, it records a year-on-year decline of 7.2%.
The financial report also shows that in Q2 2020, the global epidemic had a great impact on the overall smartphone market. Xiaomi’s smartphone revenue in the quarter was 31.6 billion ($4.5 billion), down 1.2% year-on-year. Xiaomi’s smartphone sales in the quarter were 28.3 million units.
The Chinese manufacturer benefitted from the rising proportion of mid-to-high-end mobile phone sales. Xiaomi’s global average selling price (“ASP”) of smartphones continued to rise, up 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 ranks fourth in the world, with a market share of 10.1%.
Other Xiaomi businesses
Xiaomi Group’s Internet service revenue hit 5.9 billion yuan ($856 million), a year-on-year increase of 29.0%, accounting for 11.0% of total revenue. Advertising, games and other value-added services all achieved growth.
In June 2020, MIUI monthly active users increased to 343.5 million, a year-on-year increase of 23.3%. Among them, the monthly active users of MIUI in Mainland China are 109.7 million.
Xiaomi’s advertising business revenue hit 3.1 billion yuan ($450 million), a year-on-year increase of 23.2%. In the second quarter of 2020, game 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 game market in the second quarter.
In addition, revenue from other Internet value-added services hit 1.8 billion yuan ($261 million), a year-on-year increase of 27.0%. This is mainly due to the growth of its financial business, Youpin e-commerce platform and TV membership revenue.
The financial report also shows that the revenue of IoT and consumer products is 15.3 billion ($2.2 billion). This is an increase of 2.1% from the same period last year.
The sales revenue of smart TVs and laptops decreased by 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 down overall, and global shipments of Xiaomi smart TVs still reached 2.8 million units, maintaining a year-on-year growth. Furthermore, Xiaomi’s foreign market revenue hit 24 billion yuan ($3.4 billion). This is a year-on-year increase of 10.0%, accounting for 44.9% of total revenue.
Xiaomi’s performance outside China
In the second quarter of 2020, according to Canalys data, Xiaomi’s smartphone shipments in Europe increased by 64.9% year-on-year. It has a market share of 16.8% and ranks in the top three for the first time. In Western Europe, Xiaomi’s smartphone shipments grew by 115.9% year-on-year, with a market share of 12.4%. Furthermore, Xiaomi smartphone shipments accounts for 30.7% of the Indian smartphone market. In Latin America, the Middle East and Africa, Xiaomi’s smartphone shipments grew by 99.4%, 66.3%, and 113.0% year-on-year, respectively.