Tech and Telecom

Smartphone Sales Boost Xiaomi’s Q2 Earnings by 27%

Xiaomi Corporation has announced strong second-quarter earnings, driven by a surge in smartphone sales. The company reported increased revenue and profits for the quarter.

In a first, Xiaomi disclosed sales figures for its SU7 electric vehicle. Since its launch in April, the company has sold over 27,000 units of the EV.

Xiaomi’s smartphone sales surged in the second quarter of 2024, with revenue reaching $6.5 billion. This represents a significant 27% increase compared to last year. The company shipped 42.2 million smartphones, including those from its popular Redmi and Poco sub-brands.

Premium smartphones, priced above $420 in mainland China, accounted for 22.1% of total shipments, marking a year-on-year increase. This segment includes flagship models like the Xiaomi 14 Pro and the Xiaomi Mix Fold 3, which are currently exclusive to the Chinese market.

For the 16th consecutive quarter, Xiaomi has maintained its position as the world’s third-largest smartphone manufacturer, trailing behind industry giants Apple and Samsung. The company demonstrated particularly strong performance in Latin America and the Middle East, securing second place in both regions with market shares of 18.6% and 21.2%, respectively.

Xiaomi’s global ecosystem has also expanded significantly, reaching 676 million users, a notable 11.5% increase year-on-year. Impressively, three-quarters of these users are located outside of Xiaomi’s home market of mainland China, which accounts for 164 million users.

During a media briefing following the earnings release, Xiaomi Founder and President Lu Weibing expressed confidence in the company’s electric vehicle ambitions. Weibing revealed that Xiaomi is on track to deliver 120,000 EVs by the end of 2024, with factories implementing double shifts to meet surging demand.

While Xiaomi’s Smart EV business generated $900 million in revenue, it remains unprofitable, posting a loss of $252 million. However, the company anticipates improved profitability as production scales up to fulfill growing order volumes.

Share
Published by
Aasil Ahmed