Today, Xiaomi released 2021 Q2 financial report. According to it, in the mentioned period, the company got revenue of 878 billion yuan ($135.54 billion), an increase of 64.0%; the adjusted net profit was 6.3 billion ($0.97 billion), a year-on-year increase of 87.4%. Both revenue and profit exceeded expectations.
Moreover, as the company’s data shows, in the second quarter of 2021, Xiaomi smartphones revenue reached 59.1 billion yuan ($9.12 billion), a year-on-year increase of 86.8%. By the way, it was 31.6 billion yuan ($4.88 billion) in the same period last year.
In terms of sales volume, in the second quarter, the global smartphone shipments reached 52.9 million units, an increase of 86.8% year-on-year. In the same period last, year, it was 28.3 million units. Thus, the company is walking in stride and if so, it will reach the goal soon.
Xiaomi Smartphones ASP
However, there was an interesting section concerning the average selling price (AVP) of the Xiaomi smartphones. In the second quarter, the ASP was 1116.7 yuan ($172.39). As a reference, a year earlier, it was 1116.3 yuan ($172.33). In other words, the Xiaomi smartphones are getting more expensive.
We understand that many will joke saying 0.4 yuan is not a big change. But we recommend not to underestimate it. When Xiaomi’s sales almost doubled, the ASP price rose instead of falling. This simply mean that Xiaomi’s high-end smartphone sales have increased gratifyingly.
The financial report shows that Xiaomi smartphones ranked second in the world in the Q2. Its market share reached 16.7%. Global shipments of high-end smartphones exceeded 12 million units.
Also Read: Strategy Analytics: Xiaomi Ranks Second In The Global Smartphone Market
In addition, Xiaomi smartphones ranked first in 22 markets globally, and for the first time in Europe and Southeast Asia.
Due to the high-end smartphone business, Xiaomi smartphones gross profit margin in the Q2 reached 11.8%, compared with 7.2% in the same period last year. The overall gross profit margin of the group increased from 14% to 17.3%.
In this quarter, even with adjusted profit, the net profit margin reached 7%. However, Lei Jun had previously promised that the comprehensive net profit margin of Xiaomi hardware would not exceed 5%. Xiaomi did not announce the specific revenue and profit of the hardware business. But in fact, the comprehensive hardware net profit margin in Q2 is not easy to calculate.
Apart from this, Xiaomi’s revenue from IoT and consumer products in the second quarter was 20.7 billion yuan ($3.2 billion), a year-on-year increase of 35.9%.
The number of monthly active users of Xiao Ai surpassed 100 million for the first time, reaching 102 million; the shipment volume of Xiaomi TV in mainland China has been the first for 10 consecutive quarters. Also, the Xiaomi TV is in the world’s top five.