Xiaomi Reports Resilient Performance in Q2 2023 Despite Challenges

Xiaomi Corporation has released its financial results for the second quarter of 2023, demonstrating a robust performance amid a changing market landscape. The company reported a 4 percent decrease in total revenue, amounting to RMB67.4 billion, while achieving an adjusted net profit of RMB5.1 billion during the same period.
Xiaomi store in rural IndiaIn the smartphone segment, Xiaomi’s revenue stood at RMB36.6 billion, bolstered by global smartphone shipments totaling 32.9 million units. Notably, the average selling price (ASP) of Xiaomi smartphones reached RMB1,112, marking a 2.8 percent year-over-year increase. A substantial highlight was the surge in smartphone ASP within mainland China, where it rose by over 24 percent. This surge was attributed to Xiaomi’s ongoing strategy of smartphone premiumization.

Industry analytics from Canalys revealed that Xiaomi maintained its position as the third-largest global smartphone shipper, securing a 12.9 percent market share in Q2 2023—an increase of 1.6 percentage points compared to the previous quarter.

Xiaomi’s revenue from Internet of Things (IoT) and lifestyle products surged by 12.3 percent year-over-year, reaching RMB22.3 billion. The company’s gross profit margin in this segment surged by 3.3 percentage points, reaching an all-time high of 17.6 percent. As of June 30, 2023, the Xiaomi AIoT platform boasted an impressive 654.5 million connected devices (excluding smartphones, tablets, and laptops), marking a 24.2 percent increase. Furthermore, the number of users with five or more devices connected to the platform reached 13.0 million—a remarkable growth of 27.8 percent.

Xiaomi’s internet services revenue also showcased strong performance, achieving RMB7.4 billion—an increase of 6.8 percent compared to the same period last year. Impressively, the gross profit margin for internet services reached 74.1 percent, demonstrating a year-over-year increase of 1.1 percentage points. Overseas internet services contributed significantly, increasing by 19.7 percent to RMB2.0 billion, making up 26.8 percent of the total internet services revenue—an uptick of 2.9 percentage points compared to the previous year.

The user base of Xiaomi’s MIUI, both globally and within mainland China, reached new milestones. The global monthly active users (MAU) of MIUI exceeded 606.0 million, marking a growth of 10.8 percent. Meanwhile, within mainland China, the MAU of MIUI reached 149.3 million—a 6.5 percent increase. In the realm of smart TVs, global MAU surpassed 62 million, marking an impressive growth of over 18 percent.

Xiaomi’s advertising business demonstrated its prowess with a revenue of RMB5.1 billion, indicating a significant increase of 13 percent — a new record high. This surge was attributed to refined advertising operations and an expanding base of premium smartphone users.

Furthermore, despite market challenges, Xiaomi’s gaming business sustained its growth trajectory, marking its eighth consecutive quarter of year-over-year growth. Gaming revenue reached RMB1.0 billion in the second quarter — a 7.5 percent increase — fueled by innovative strategies to attract new users and effectively manage paid users.

Xiaomi’s Q2 2023 financial results underscore the company’s adaptability and resilience, as it continues to innovate across various segments, strengthen its user base, and explore new avenues of growth.