Xiaomi's Q3 revenue exceeded expectations, with net profit increasing by 182.9% YoY | Insights from the earnings report
According to the earnings report, Xiaomi ranked among the top three in global smartphone shipments in the third quarter of 2023, with a market share of 14.1%, an increase of 0.5 percentage points YoY. The revenue from the smartphone business reached 41.6 billion yuan, with a YoY growth of 4.0%, according to Canalys data.
Under the core business strategy of "emphasizing both scale and profit," XIAOMI-W has achieved quarter-on-quarter revenue growth for the first time in six quarters, with adjusted net profit increasing by 182.9% year-on-year.
On November 20th, XIAOMI-WR announced its performance, showing that its third-quarter revenue was 70.89 billion yuan, exceeding market expectations of 70.46 billion yuan, with a year-on-year increase of 0.6%. The third-quarter net profit was 4.87 billion yuan, with market expectations of 4.33 billion yuan, compared to a loss of 1.474 billion yuan in the same period last year, turning the loss into a profit year-on-year. The adjusted net profit was 5.99 billion yuan, with market expectations adjusted to 4.65 billion yuan, an increase of 182.9% year-on-year.
XIAOMI-W's financial report pointed out that in the third quarter of this year, the group firmly implemented the core business strategy of "emphasizing both scale and profit," steadily advancing various businesses, and continuously optimizing operational efficiency. Against the backdrop of no obvious improvement in the external environment, it achieved quarter-on-quarter revenue growth for the first time in six quarters and continued to deliver impressive profit performance.
In terms of business, in the third quarter, XIAOMI-W's revenue from the smartphone business was 41.6 billion yuan. The global smartphone shipments reached 41.8 million units, with a year-on-year increase of 4.0% and a quarter-on-quarter increase of 27.0%. Revenue from IoT and lifestyle consumer products was 20.67 billion yuan, with a year-on-year increase of 8.5%. Internet service revenue was 7.76 billion yuan, with a year-on-year increase of 9.7%.
According to Canalys data, in the third quarter of 2023, XIAOMI-W ranked among the top three in global smartphone shipments, with a market share of 14.1%, an increase of 0.5 percentage points year-on-year. It is the only brand among the top three to achieve year-on-year growth in shipments this quarter. As of September 30, 2023, the number of IoT devices connected to our AIoT platform (excluding smartphones, tablets, and laptops) has increased to 698.9 million, a year-on-year increase of 25.2%.