In the latest financial disclosure, Xiaomi Corporation, a consumer electronics and smart manufacturing company, reported its consolidated results for the year ending December 31, 2023. The company’s adjusted net profit experienced a significant increase of 126.3%, reaching RMB 19.3 billion, exceeding market expectations and marking a high in its profitability since listing. Total revenue for the period was RMB 271.0 billion.
Strategic Moves: EV Sector and Smartphone Market
Xiaomi’s entry into the smart Electric Vehicle (EV) market and continuous innovation in the smartphone segment have been central to its financial success.
The company retained its position as the third-largest smartphone vendor globally, with a total shipment of approximately 145.6 million units.
A notable strategy was the premiumization of its smartphone offerings, which led to an over 19% increase in the average selling price in mainland China.
Growth in IoT and AIoT Platforms
Revenue from Xiaomi’s IoT and lifestyle products reached RMB 80.1 billion, with a gross profit margin of 16.3%.
The number of connected IoT devices on Xiaomi’s AIoT platform as of December 31, 2023, stood at 739.7 million, a 25.5% increase year-over-year.
This expansion is reflective of Xiaomi’s strong position not only in the domestic market but also internationally, with significant presence and market share growth in various regions including the Middle East, Latin America, Africa, and Southeast Asia.
Future Directions: R&D and Global Technology Leadership
Xiaomi announced its strategic goals for 2020–2030, emphasizing long-term investment in foundational core technologies to assert its leadership in global tech innovations.
The company’s R&D expenses for 2023 amounted to RMB 19.1 billion, a 19.2% increase from the previous year, highlighting its commitment to innovation.
About Xiaomi Corporation
Xiaomi Corporation was founded in April 2010 and listed on the Hong Kong Stock Exchange in July 2018. With its core in smartphones and smart hardware connected by an IoT platform, Xiaomi aims to create quality products that enhance global living standards through innovative technology.