Yesterday, this time fully officially, Xiaomi was cleared of the charges that describe the company as a “communist Chinese military company”. Does this mean they can open champagne in the head office? Yes, but the aforementioned court decision is not the only reason to celebrate. Well, Xiaomi boasted the latest financial results for the first quarter of 2021, which turn out to be record high in the entire history of the brand. Hard numbers describing the current financial situation of the concern are impressive and worth a closer look, but nothing happens without a reason. The success story is determined by the Smartphone × AIoT strategy and investments related to research on new technologies.
Xiaomi, one of the leaders in the smartphone market, has just announced financial results for Q1 2021, which show the largest increase in revenues and profits in the company’s history. Importantly, success wasn’t just about phones.
Xiaomi Mi 11 Lite 5G – First impressions of using a powerful smartphone with a brilliant macro mode
In Q1 2021, Xiaomi recorded revenues of RMB 76.9 billion, an increase of 54.7% compared to the same period of 2020. Gross profit soared to RMB 14.2 billion, which is 87.4% year-on-year growth for us. IFRS-adjusted net profit was RMB 6.1 billion. This translates into an increase of 163.8%. The company managed to sell 49.4 million smartphones, achieving revenue (from the smartphone segment) of 51.5 billion RMB, which is 69.8% higher than in Q1 2020. The giant, in global terms, sold as many as 4 billion “premium” smartphones in the first quarter of 2021, i.e. costing over EUR 300.
Xiaomi Mi 11 Ultra in our hands – First impressions of using a smartphone with a huge camera module
The Smartphone × AIoT strategy means focusing on both smart phones and selling smart TVs, set-top boxes, air purifiers and electric scooters. Research is needed to develop these sectors of activity. The company only spent over RMB 3 billion in Q1 2021, which is 61% more than in Q1 2020. Xiaomi does not think to slow down and is already planning further investments in this area. If we take into account the company’s ambitions, which were discussed during the premiere of Xiaomi Mi 11 Ultra, the future of the brand looks bright.