Xiaomi’s overall smartphone ASP has declined, and the number of MIUI users has reached a new high. Global smartphone shipments rank third, with a market share of 11.3%.
Xiaomi’s revenue in the first quarter exceeded expectations, its net profit increased by 34.2% quarter-on-quarter, its gross profit margin hit a record high, and its global smartphone shipments declined. At the same time, it announced its entry into the AI large-scale model competition.
After the Hong Kong stock market closed on May 23, Xiaomi Group announced its first-quarter performance report. According to the report, Xiaomi’s revenue in the first quarter was 59.5 billion yuan, down 18.9% year-on-year, higher than the estimated 58.81 billion yuan.
In terms of profit, the operating profit in the first quarter was 5.9 billion yuan, exceeding the estimated 2.67 billion yuan;Net profit was 4.2 billion yuan, a loss of 587 million yuan in the same period last year, significantly exceeding the estimated 2.54 billion yuan, an increase of 34.2% month-on-month; adjusted net profit was 3.23 billion yuan, a year-on-year increase of 13%, higher than the estimated 3 billion yuan Yuan Renminbi.
In terms of gross profit, Xiaomi’s gross profit in the first quarter decreased to 11.6 billion yuan from 12.7 billion yuan in the same period last year, a year-on-year decrease of 8.8%.Gross margin was 19.5%, in line with expectations and a record high.
In terms of shipments, Xiaomi’s global smartphone shipments in the first quarter were 30.4 million units, ranking third globally with a market share of 11.3%. The domestic average selling price (ASP) hit a record high in a single quarter, with a year-on-year increase of more than 18%.
According to third-party data, in the first quarter of 2023, Xiaomi will rank first among Android manufacturers in the sales of smartphones in the RMB 4,000-5,000 price range in mainland China, and its market share has increased by 7.7 percentage points year-on-year to 24.1%. The proportion of high-end smartphone shipments in the overall smartphone shipments increased by 4.0 percentage points year-on-year.
In the first quarter, Xiaomi’s research and development expenditure reached 4.1 billion yuan, a year-on-year increase of 17.7%, and it is estimated that the total research and development investment in 2023 will exceed 20 billion yuan. In this quarter, Xiaomi Group’s overall expenses were RMB 9.4 billion, a year-on-year decrease of 6.4%, and innovative businesses such as smart electric vehicles invested RMB 1.1 billion.
Smartphone shipments decline, gross margin rises
In the first quarter of 2023, the global smartphone market will continue to be under pressure. According to Canalys data, global smartphone shipments in the quarter fell 13.3% year-on-year, the lowest first-quarter shipments since 2014.
The decline in shipments led to a decline in mobile phone revenue. In the first quarter, Xiaomi’s smartphone segment revenue was 35 billion yuan, a year-on-year decrease of 23.6%. The overall smartphone unit price also declined.
In the first quarter, the ASP of smartphones decreased by 3.1% year-on-year to 1151.6 yuan, mainly due to the strengthening of inventory clearance in overseas markets, and the increase in ASP of domestic mobile phones.
Xiaomi pointed out in its financial report that in the past less than a year, four consecutive high-end smartphone products have achieved high user reputation in the first month of launch, laying a solid foundation for the strategic development of high-end mobile phones.
The gross profit margin of the smartphone segment increased from 9.9% in the first quarter of 2022 to 11.2% in the first quarter of 2023, mainly due to the decline in the price of core components (such as memory and display panels) and the improvement of product mix.
MIUI continues to hit new heights
In the first quarter, the number of monthly active users of Xiaomi’s global MIUI reached a record high.
As of March 2023, the number of monthly active users of MIUI worldwide will reach 594 million, a year-on-year increase of 12.4%. Among them, the number of domestic MIUI monthly active users reached 146 million, a year-on-year increase of 7.8%.
In the first quarter, the global monthly active users of Xiaomi Smart TV exceeded 60 million, a year-on-year increase of over 18%.
In addition, revenue from the Internet service segment decreased by 1.2% from RMB 7.1 billion in the first quarter of 2022 to RMB 7 billion in the first quarter of 2023, mainly due to the decrease in revenue from Xiaomi’s financial technology business and advertising business, but part of it was absorbed by the game. Offset by an increase in operating income.
Xiaomi’s overseas Internet service revenue increased by 16.4% from RMB 1.6 billion in the first quarter of 2022 to RMB 1.8 billion in the first quarter of 2023.
Other revenue decreased by 36.9% from RMB 1.0 billion in the first quarter of 2022 to RMB 0.6 billion in the first quarter of 2023, mainly due to the decrease in revenue from the sale of buildings.
IoT revenue fell 13.6% year-on-year
In the first quarter, Xiaomi’s IoT and consumer products revenue was 16.8 billion yuan, a year-on-year decrease of 13.6%.It was mainly due to the decrease in sales of smart TVs and notebook computers and certain consumer products in overseas markets.
Smart TV and notebook computer revenue was 4.7 billion yuan, down 24% year-on-year, mainly due to the decline in smart TV and notebook computer shipments and ASP.
The revenue of smart home appliances has maintained a strong momentum of development, and revenue in the first quarter of 2023 will increase by more than 60% year-on-year, mainly due to the substantial increase in shipments of smart air conditioners and refrigerators.
As of December 31, 2022, the number of IoT devices (excluding smartphones, tablets, and laptops) connected to the Xiaomi AIoT platform reached 589 million, a year-on-year increase of 35.8%.
In terms of gross profit margin, the gross profit margin of the IoT and consumer products segment will rise from 15.6% in the first quarter of 2022 to 15.7% in the first quarter of 2023, mainly due to the increase in the gross profit margin of smart home appliances, some of which are consumed by certain consumer goods in overseas markets. Offset by lower product gross margin.
As of March 31, 2023, the number of connected IoT devices (excluding smartphones, tablets and laptops) on the Xiaomi AIoT platform has increased to 618 million, a year-on-year increase of 29.2%.
Enter the AI Large Model Competition
Xiaomi announced in the earnings report:
We will actively embrace the new round of technological changes brought about by artificial intelligence. In April 2023, we formally established the AI Lab Large Model Team. Currently, we have more than 1,200 people in the AI field. We will continue to explore AI-related user scenarios, give full play to our own technological advantages, and open up more opportunities with our partners with an open attitude.
Risk Warning and Disclaimer
Market risk, the investment need to be cautious. This article does not constitute personal investment advice, nor does it take into account the particular investment objectives, financial situation or needs of individual users. Users should consider whether any opinions, opinions or conclusions expressed herein are applicable to their particular situation. Invest accordingly at your own risk.