The SU7 model has attracted strong public attention for Xiaomi in the electric vehicle market.
Xiaomi’s shares soared after the launch of the SU7, its first electric vehicle with a competitive price and impressive design. While initial predictions suggested that Xiaomi could lose money, the growth potential in China's promised electric vehicle market is being highly appreciated.
The launch of the SU7 marks an important step in Xiaomi's product diversification strategy. This model has a sporty design inspired by Porsche, with a starting price of less than $30,000, lower than the Tesla Model 3 in China. Thanks to its price advantage and prestigious brand in the electronics industry, Xiaomi has attracted strong interest from consumers.
Xiaomi's newly launched SU7 electric car.
Xiaomi's newly launched SU7 electric car.
However, Xiaomi is expected to lose money on every SU7 it sells this year. According to Citi Research, the net loss could be as high as 4.1 billion yuan ($566.82 million), or 68,000 yuan (about $9,400) per car. The main reason for this loss is the fierce price war in the Chinese electric vehicle market and the signs of slowing consumer demand.
Despite the potential for losses, Xiaomi is still highly regarded for its long-term growth potential in China's electric vehicle market, which is expected to grow strongly in the coming years, with around 240 new electric vehicle models competing in the 200,000-300,000 yuan ( $27,644-$41,467) price segment, up nearly 20% from last year.
Mi Home app monthly active users (MAU) increased to 85.8 million in December 2023.
Xiaomi has just announced its audited results for the fiscal year ending December 31, 2023. Obvious, in 2023, the group's total revenue was 37.52 billion USD, adjusted net profit increased by 126.3%, reaching 2.67 billion USD. The increase in net profit far exceeded market expectations and marked the second highest profit since the group was listed.
Xiaomi is a technology corporation with a diverse ecosystem of devices. (Illustration photo)
Xiaomi is a technology corporation with a diverse ecosystem of devices. (Illustration photo)
In the smartphone segment, Xiaomi's global sales volume in 2023 will reach approximately 145.6 million units. Its annual smartphone revenue will reach US$21.83 billion and its gross profit margin will be 14.6%. According to Canalys, Xiaomi has maintained its third-largest smartphone sales volume globally for three consecutive years. In the fourth quarter of 2023 alone, the group's global smartphone sales volume will reach 40.5 million units, up 23.9% year-on-year.
Facing fierce market competition, Xiaomi continues to innovate technology and make strides in the high-end smartphone market. In 2023, Xiaomi's average selling price per unit in China increased by more than 19% year-on-year.
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In 2023, Xiaomi's IoT and lifestyle product revenue was US$11.09 billion, and its gross profit margin reached 16.3%, reaching a record high. By the end of 2023, the number of connected IoT devices (excluding smartphones, tablets, and laptops) on Xiaomi's AIoT platform reached 739.7 million, up 25.5% year-on-year.
The number of users with five or more devices connected to Xiaomi's AIoT platform (excluding smartphones, tablets, and laptops) reached 14.5 million, up 25.3% year-on-year. The monthly active users (MAUs) of the Mi Home app increased to 85.8 million in December 2023.
Meanwhile, Xiaomi TV has succeeded in its premiumization strategy. According to All View Cloud, Xiaomi TV shipments were among the top five globally in 2023. In 2023, Xiaomi's large-sized smart home appliances maintain high growth in sales, with revenue increasing by nearly 40% year-on-year. Xiaomi's global tablet shipments exceeded 5 million units, up more than 50% year-on-year.
In 2023, Xiaomi's Internet services reached a high record in both revenue and gross profit margin, with Internet services revenue reaching US$4.17 billion and Internet services gross profit margin reaching 74.2%. Benefiting from its global footprint, Xiaomi's MAUs (monthly active users) globally and in China (including smartphones and tablets) reached 641.2 million and 155.6 million, respectively.
As Xiaomi continues to optimize the efficiency of its platforms, the group's advertising revenue reached $2.84 billion, up 11.2% year-on-year. Coupled with the upgrade of its smartphone premiumization strategy, the number of active users and paying users in the group's gaming business continued to increase, driving Xiaomi's gaming revenue to reach $610 million in 2023, up 7% year-on-year.
