Xiaomi beats market expectations as profit gains 12.8%

The company’s smartphone and IoT products revenue grew by 24% and 8%, respectively.

Internet company Xiaomi Corporation recorded a 12.8% growth to $15.4b (RMB13b) in adjusted net profit in 2020, exceeding market expectations, as it banked on its premium smartphone market.

“We continued to execute our ‘Smartphone × AIoT’ (AI + IoT) strategy and our solid performance for the year demonstrates the resilience and competitiveness of our business model,” Xiaomi said.

Total revenue in 2020 rose 19.4% YOY to $292.4b (RMB245.9b), whilst gross profit stood at $43.7b (RMB36.8B), reflecting a 28.7%YOY increase.

Earnings per share was $1.01 (RMB0.849).

During the fourth quarter of 2020, the group generated $83.8b (RMB70.5b), up 24.8% from the same quarter in 2019. Adjusted net profit during the quarter was $3.8b (RMB3.2b), higher by 36.7%.

“Due to the easing of lockdown restrictions in major markets during the second half of 2020, our business performance has managed to stage an impressive rebound,” the group said.

The group further strengthened its position in the Smartphone x AIOT strategy, allowing it to generate $80.1b (RMB67.4b) revenue in the IoT and lifestyle products. This is 8.6% higher compared to the previous year.

Xiaomi’s smartphone revenue grew 24.6%YOY to $181b (RMB152.2b) in 2020. Total global shipment of smartphones reached 146.4m units, representing a 17.5% increase.

Citing technology market analyst, Canalys, the group said Xiaomi ranked 3rd in terms of smartphone shipments globally with a market share of 12.1%.

Moreover, Xiaomi sold some 10 million premium smartphones globally with retail prices at or above $3,568 (RMB3,000) in Mainland China and EUR300 or equivalent in overseas market.

The group also strengthened their position in the online channel, reporting that its online smartphone market share in mainland China rose to 29.5% by the fourth quarter from 18.5% from the first.

Xiaomi was also among the smartphones that ranked first in sales volume during the Singles’ Day and Double 12 Shopping Festivals in 2020.

The group also saw its revenue surge to $28.3b (RMB23.8b) from its internet services in 2020. Its global internet user base also grew rapidly by 28%YOY to 396.3 million.