Yesterday, Xiaomi announced its second-quarter financial report as of June 30, 2021. According to the financial report, Xiaomi’s total revenue in the second quarter was 87.79 billion yuan ($13.5 billion), a year-on-year increase of 64%. In terms of Internet services, in the second quarter of 2021, Xiaomi’s Internet service revenue hit 7 billion yuan (>$1 billion), a record high, and revenue increased by 19.1% year-on-year. The financial report also shows that in the second quarter of 2021, Xiaomi’s global Internet users will continue to maintain rapid growth and break new record highs. In June 2021, the number of MIUI monthly active users increased by 32.1% year-on-year to 453.8 million.
Among them, the number of monthly active users in Mainland China hit 124 million, a year-on-year increase of 13.0%, and a net increase of 5.3 million from March 2021. In June 2021, the number of monthly active users of global smart TVs and Xiaomi boxes increased by more than 34.0% year on year. As of June 30, 2021, the number of paying subscribers of Xiaomi TV has increased to 4.7 million, a year-on-year increase of 17.1%.
In the second quarter of 2021, Xiaomi’s advertising business revenue hit a record high, reaching 4.5 billion yuan ($694.8 million), a year-on-year increase of 46.2%. In this quarter, its gaming revenue reached 900 million yuan ($138.9 million), a year-on-year decrease of 10.7%.
The financial report also shows that this quarter, Xiaomi’s other value-added services revenue reached 1.6 billion yuan ($247.0 million). This is a year-on-year decrease of 10.3%. In the second quarter of 2021, Xiaomi’s foreign Internet service revenue hit 1.1 billion ($169.8 million), a year-on-year increase of 96.8%.
Xiaomi smartphone ranks first in multiple markets
According to the report, Xiaomi smartphones rank first in 22 markets globally. For the first time, the company has the first position in Europe and Southeast Asia. Furthermore, another interesting section of the report relates to the Average Selling Price (ASP) 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 ASP of Xiaomi smartphones is pretty stable.
When its sales almost doubled, the ASP price rose instead of falling. This simply means that Xiaomi’s high-end smartphone sales have increased gratifyingly. The financial report also shows that Xiaomi smartphones rank second in the world in the second quarter. Its market share reached 16.7%. The company’s global shipment of flagship smartphones exceeds 12 million units.
Due to the high-end smartphone business, its smartphone’s gross profit margin in Q2 2021 hit 11.8%. This is better than the 7.2% in the same period of last year. The overall gross profit margin of the group increased from 14% to 17.3%.