Xiaomi Reports Record Profits for 2023, Driven by Strong Smartphone Sales

TLDR:

• Xiaomi reports record profits for 2023, with total revenue reaching RMB271.0 billion.
• Strong smartphone sales and expansion in the premium segment contribute to Xiaomi’s stellar performance.
• Revenue from IoT and lifestyle products sees significant growth, with the number of connected devices reaching 739.7 million.
• Xiaomi’s internet services segment achieves record highs in revenue and gross profit margin.

Xiaomi Corporation, a leading consumer electronics and smart manufacturing company, has announced its audited results for the year 2023, revealing a stellar performance with total revenue reaching RMB271.0 billion and adjusted net profit soaring by 126.3% to RMB19.3 billion.

Robust Smartphone Sales

Xiaomi’s global smartphone shipments reached approximately 145.6 million units in 2023, with annual revenue from smartphones hitting RMB157.5 billion. The company maintained its position as the third-largest smartphone vendor globally for the third consecutive year. Facing intense market competition, Xiaomi continued to embrace technology innovation and made strides in the premium smartphone market. The average selling price of smartphones in China increased by over 19% year-on-year, and the company’s market share in the RMB4,000-RMB6,000 price segment in China reached 16.9% in 2023.

Expansion in Premium Segment

Xiaomi saw significant growth in the premium smartphone market, with the average selling price of smartphones in China increasing by over 19% year-on-year. The company’s market share in the RMB4,000-RMB6,000 price segment in China reached 16.9% in 2023. Xiaomi’s proportion of premium smartphones in mainland China (models with retail prices at or above RMB3,000) shipment represented more than 20% of the Group’s total smartphone shipments for the year.

IoT and Lifestyle Products

Revenue from Xiaomi’s IoT and lifestyle products reached RMB80.1 billion, with the number of connected IoT devices on its platform reaching 739.7 million. Xiaomi continued to broaden its smart living scenarios and gained global recognition. Xiaomi’s smart large home appliances sustained a high growth momentum in sales, with its revenue increasing by nearly 40% year-on-year. Xiaomi’s global tablet shipments exceeded 5 million units, doubling year-on-year, and its wearable band shipments ranked No. 2 both in mainland China and in global markets.

Internet Services Segment

Xiaomi’s internet services segment achieved record highs in revenue and gross profit margin, with revenue reaching RMB30.1 billion. The company’s advertising revenue and gaming revenue also experienced significant growth. In its global partnerships, Xiaomi adopts an open approach, unlocking the potential for business monetization. Revenue from its overseas internet services increased 24.1% year-on-year to RMB8.4 billion, accounting for 28.0% of the Group’s total internet services revenue.

Setting New Goals for 2020–2030

In 2023, Xiaomi introduced its new goals for 2020–2030, committing to sustainable investments in foundational core technologies. The company is dedicated to becoming a leader in the evolving realm of global cutting-edge technologies. Xiaomi’s research and development (“R&D”) expenses were RMB19.1 billion, up 19.2% year-on-year, and the Group had 17,800 R&D personnel as of December 31, 2023. On December 28, 2023, Xiaomi unveiled its first EV product, the Xiaomi SU7 Series, at the Xiaomi EV Technology Launch event.

For more information about Xiaomi as a company, please visit https://www.mi.com/global/discover/newsroom.