Xiaomi's reports show high performance for the second quarter, driven by smartphones and connected devices. But what exactly happened? Xiaomi's second quarter revenue rose 68,52% from RMB 26,88 billion to RMB 45,3 billion, important values driven by smartphone sales but these economic performance is also due to connected devices IoT. Xiaomi recorded revenues of RMB 30,6 billion from smartphones and RMB 104 billion from connected devices. The company reported a net profit of RMB 14,63 billion, compared with a net loss of RMB 11,97 billion in the same period last year. In short, apparently the smartphone sector is not the company's true core business.
All these numbers are important not only for net revenues but also for the recent IPO that the Chinese OEM has undergone. In fact, Xiaomi's shares rose 3% after the market opened in Hong Kong on Thursday morning with value at HKD18,22, which implies that investors are not disappointed with the company's performance so investments will continue to arrive. great number. Xiaomi has been trying to move from a smartphone vendor to an internet service company whose revenue comes mainly from advertising. Xiaomi's efforts seemed to pay off as relative revenues grew to RMB 4 billion, an increase of 63,6%.
Xiaomi's sales and revenues increase, but the business core is not smartphones
"The overseas market opportunity is huge, which provides tremendous growth potential for Xiaomi on both hardware and software," said Fubon Research analyst Dany Wu in a broker note. "Despite falling margins, we believe this is a compromise for rapid expansion of its overall product lines." The company hopes smartphone sales can drive traffic to its apps, increasing software business and advertising sales, and we wish it all the best.
