Xiaomi Corporation has reported impressive results for the third quarter of 2024, with revenue reaching a record RMB92.5 billion. This marks a 30.5% year-on-year increase and represents the company’s third consecutive quarter of growth. The tech giant has also maintained strong adjusted net profit of RMB6.3 billion, showcasing its continued success in executing its premiumisation strategy, with a gross profit margin of 20.4%.
The group’s three core businesses – smartphones, IoT and lifestyle products, and internet services – collectively delivered revenue of RMB47.5 billion, RMB26.1 billion, and RMB8.5 billion, respectively. Revenue from smart electric vehicles (EVs) and other new initiatives reached RMB9.7 billion, bringing Xiaomi closer to its RMB10 billion target.
The growth was driven by Xiaomi’s “Human x Car x Home” smart ecosystem, which integrates smartphones, electric vehicles, and IoT products. This ecosystem has become a key engine for growth, reflecting the company’s expansion into the EV market, which has surpassed expectations.
Smartphone growth and premiumisation strategy
Xiaomi’s smartphone division showed strong growth, with global shipments increasing by 3.1% year-on-year to 43.1 million units in Q3. The company maintained its position as one of the top three global smartphone brands for the 17th consecutive quarter, holding a 13.8% market share. In mainland China, Xiaomi’s market share rose by 1.2 percentage points to 14.7%, securing a fourth-place position.
The Xiaomi 15 Series played a significant role in this success, achieving 1 million units in sales faster than its predecessor. The series was a top performer during the 2024 Double 11 shopping festival, leading in both sales volume and revenue in the RMB4,000 to RMB5,999 price segment.
Xiaomi’s push into premium smartphones also yielded strong results. Smartphones priced at RMB3,000 and above now make up 20.1% of the company’s shipments in mainland China, a 7.9 percentage-point increase compared to the previous year. The company achieved notable gains in the RMB3,000 – 4,000 and RMB4,000 – 5,000 segments, where market shares increased by 9.3 and 9.7 percentage points, respectively.
IoT and lifestyle products show significant growth
The IoT and lifestyle product division also experienced strong growth, with revenue increasing by 26.3% year-on-year to RMB26.1 billion. The gross profit margin for this segment reached a record 20.8%, up 2.9 percentage points from last year. Xiaomi’s IoT products, including air conditioners, washing machines, and refrigerators, saw impressive sales figures. Shipments of air conditioners rose by more than 55%, with over 1.7 million units sold in Q3. Meanwhile, refrigerator and washing machine shipments increased by 20% and 50%, respectively.
Xiaomi’s wearables and tablets also performed well globally, with its tablets ranking fifth worldwide and third in mainland China. The company’s wearable product sales grew by more than 50%, with both smartwatches and TWS earbuds setting new sales records.
EVs and new initiatives drive future growth
Xiaomi’s electric vehicle business showed promising results, with revenue reaching RMB9.7 billion in Q3, and the company is on track to hit its RMB10 billion goal. Deliveries of the Xiaomi SU7 series reached 39,790 vehicles in Q3, bringing the total number of deliveries to 67,157 units as of September 30. Xiaomi has expanded its EV sales network to 127 centres across 38 cities in mainland China.
In October 2024, the company hit a significant milestone with the completion of 100,000 vehicles produced. The Xiaomi SU7 Ultra prototype also set a new record at the Nürburgring Nordschleife, marking the fastest time for a four-door car. Pre-orders for the mass-produced Xiaomi SU7 Ultra, which is expected to be released in March 2025, reached 3,680 vehicles in just 10 minutes.
Strong R&D investment and future innovations
Xiaomi is continuing to increase its investment in research and development (R&D), with Q3 R&D expenses rising by 19.9% year-on-year to RMB6.0 billion. The company now has over 20,000 R&D staff and holds more than 41,000 patents globally. In 2024, Xiaomi’s ranking in the global patent family for 5G Standard Essential Patents improved to 8th worldwide.
The company is also making strides in its smart driving technologies, with its smart driving system having covered more than 75 million kilometres as of October 2024. Additionally, Xiaomi unveiled its Xiaomi HyperOS 2, which is aimed at building a comprehensive AI ecosystem across devices, featuring new innovations like HyperCore, HyperConnect, and HyperAI.
As Xiaomi continues to expand its smart ecosystem, the company remains committed to leading the way in cutting-edge technologies. With its ambitious R&D investments and focus on product innovation, Xiaomi is setting the stage for continued growth in the coming quarters.
