Xiaomi continued its impressive trajectory in the first quarter of 2024, echoing the momentum it carried over from a successful 2023. The Chinese tech giant reported a robust 27% year-over-year increase in revenue, reaching a staggering €9.6 billion ($10.42 billion) between January and March. This stellar performance was further accentuated by a remarkable 100.8% surge in net profit. Reaching €842.7 million ($897.6 million) compared to the same period last year.
Xiaomi Soars in Q1 2024: Strong Growth Across All Sectors
This positive trend permeated all of Xiaomi’s core business segments, including smartphones, Internet of Things (IoT), internet services, and, most notably, its burgeoning automotive division.
Focus on R&D: Powering Innovation
Xiaomi’s commitment to innovation is evident in its significant investment in research and development (R&D). During Q1 2024, R&D expenses witnessed a substantial increase of 25.4% year-over-year, reaching €662 million ($722.4 million). This surge is largely attributed to the company’s dedication to its electric vehicle (EV) development program. Additionally, Xiaomi is actively exploring the potential of artificial intelligence (AI) and large language models (LLMs). Their research delves into hybrid cloud and on-device computing solutions to further optimize AI integration. This focus on AI is already evident in Xiaomi’s HyperOS operating system, where functionalities like real-time translation and text-to-image generation enhance user experience. The company also envisions expanding AI applications into the smart home and automotive domains.
Smartphone Dominance: Strength and Premiumization
Xiaomi maintained its position as the world’s third-largest smartphone manufacturer in Q1 2024, as per data from Counterpoint Research. This dominance is further solidified by its performance in Europe and Italy, where it secured the coveted third-place position in both markets. Xiaomi shipped a staggering 40.6 million smartphone units in the first quarter, reflecting a robust 33.7% growth compared to Q1 2023. Notably, the company is experiencing a significant shift towards premium smartphone sales, with premium models accounting for 21.7% of total shipments. This represents a 1.4% increase from the previous year, indicating a growing consumer appetite for high-end Xiaomi devices. Smartphone revenue mirrored this positive trend, with a remarkable 32.9% year-over-year increase to reach €5.9 billion ($6.43 billion).
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IoT and Smart Products: Connecting the Future
The IoT and smart products segment emerged as another bright spot for Xiaomi in Q1 2024. Revenues in this sector climbed by 21% year-over-year to reach €2.6 billion ($2.83 billion). This growth was fueled by a significant upsurge in demand for large household appliances, with revenue in this category alone showcasing a remarkable 46% increase. Consumers displayed a strong preference for Xiaomi’s air conditioners (+63%), refrigerators (+52%), and washing machines (+47%). Additionally, the company witnessed a massive 93% surge in tablet shipments, further solidifying its position in the broader consumer electronics landscape. Xiaomi’s dominance extends to the audio segment as well, with its TWS earphones securing the coveted second-place spot in the global market.
The company’s robust AIoT platform continues to experience impressive growth. The total number of connected IoT devices reached a staggering 786 million, representing a 27.2% increase year-over-year. This growth is further underscored by the expanding user base with multiple connected devices. The number of users with five or more devices linked to the platform surged by 24.2% to reach 15.2 million. Monthly active users (MAUs) of the Mi Home app, which serves as the central hub for managing Xiaomi’s smart home ecosystem, also witnessed a steady 14% growth, reaching 89.1 million.
Internet Services: Global Expansion and User Engagement
Xiaomi’s internet services segment also exhibited positive growth in Q1 2024. Overall revenue in this sector reached €1 billion ($1.09 billion), reflecting a 14.5% increase compared to the previous year. Notably, the company is experiencing significant growth in its international internet services business, with revenue from abroad surging by an impressive 31.2% to reach €318.3 million ($347.2 million). This trend signifies Xiaomi’s successful global expansion efforts.
The company’s focus on user engagement is evident in its growing monthly active user base. The total number of MAUs
