The second quarter of 2021 was a success for Xiaomi. The company’s forecasts looked risky and optimistic, but they turned out to be even modest against the background of real work results. Xiaomi continues to evolve, and profit grows with it. It is increasingly becoming a tech giant that makes more money.
According to Xiaomi, its second-quarter earnings were up 84.4% year-on-year. The revenue was $ 13.56 billion, which is 64% more than a year earlier. But most of all, the company is pleased with the growth of net profit – 87.4% compared to the second quarter of 2020.
Deliveries of smartphones for the period April-June amounted to 52.9 million units, of which 12 million were for devices with a price tag of $ 350. Almost every fourth smartphone sold was a flagship or mid-range model. This is not a bad result for the Chinese company, but it is clear that sales are still due to affordable models.
The company’s indicators should be good and in the third quarter of this year, yes, it may well again be on the second line of the rating of the largest smartphone manufacturers. But in the fourth quarter the situation should be radically different. Apple promises to bypass everyone with its iPhone 13 line. The Cupertino-based company expects to sell about 90 million smartphones of the new series and take the first line of the table of ranks.
Xiaomi’s overall performance
Our core “Smartphone × AIoT” strategy continued to underpin our outstanding performance. According to Canalys, in the second quarter of 2021, our global smartphone shipments ranking rose to No. 2 for the first time, with a market share of 16.7%. Our smartphone shipments in mainland China ranked among the top three, with a market share of 16.8%. Due to the strong growth in smartphone shipments, we achieved new record high monthly active users (“MAU”) of MIUI both globally and in mainland China in June 2021, reaching 453.8 million and 124.0 million, respectively. At the same time, our AIoT platform continued to expand, with the number of connected IoT devices (excluding smartphones and laptops) on our AIoT platform reaching 374.5 million as of June 30, 2021. In June 2021, the MAU of our AI assistant exceeded the 100 million mark for the first time; reaching 102.0 million.
We further strengthened our online and offline channels in mainland China. During the 618 e-Commerce Shopping Festival in 2021, Xiaomi’s full spectrum of products gained widespread popularity; with total gross merchandise value from all sales channels exceeding RMB19.0 billion, representing an increase of 90% year-over-year. The sales volume of our smartphones ranked No. 1 among Android smartphones sold through major e-commerce platforms, and our IoT products achieved 158 No. 1 rankings in their respective categories across major e-commerce platforms. Meanwhile, we continued to expand our offline presence; with the total number of our retail stores in mainland China grew to more than 7,600 as of June 30, 2021.