Chinese tech giant and Hong Kong Stock Exchange-listed company Xiaomi Corp. has published its financial report for the third quarter of the year 2018. The report shows the company’s revenue for Q3 was 50.8 billion yuan, representing a 49.1% increase year-on-year. The company also posted an adjusted profit of 2.9 billion yuan which is an increase of 17.3% which significantly exceeded market expectations.
The financial report shows Xiaomi’s growth last quarter has been a strong one among which its overseas business, Internet of Things (IoT)/consumer goods and internet services business all grew rapidly. This holistic growth lends some credibility to the company’s posture as a complete internet company and not just a smartphone maker.
Furthermore, the breakdown shows Xiaomi’s mobile phone business revenue for the period was 35 billion yuan, which is an increase of 36.1%. Most of the sales from the mobile phone business were from smartphones with a revenue of 33.3 billion yuan, an increase of 20.4% over the same period last year. As of October 26, Xiaomi’s smartphone shipments exceeded 100 million units throughout the year. Xiaomi also disclosed that by the end of the third quarter of 2018, the shipment of Xiaomi Mi 8 series was close to 6 million. In addition, the company’s high-end mobile phones accounted for 31% of the total revenue from mobile phones.
The period under review also saw a slight increase in the average selling price (ASP) of Xiaomi phones year-on-year and quarter-on-quarter. In the third quarter of 2018, mobile phone ASPs in China and overseas increased by 16% and 18% respectively. In addition, in the third quarter, Xiaomi continued to promote the multi-brand strategy of the mobile phone business to serve more market segments and win a larger and more diverse user base.
Apart from the mobile phone business, Xiaomi’s income from its internet service segment also continued to grow, reaching 4.7 billion yuan in the third quarter of 2018, a year-on-year increase of 85.5%. Among them, advertising revenue increased by 109.8% year-on-year. MIUI monthly active users were also reported to have reached 224 million in the third quarter, up by 43.4% year-on-year. At the same time, the average revenue per user (ARPU) for the quarter was 21.1 yuan, an increase of 29.4%. IoT and consumer goods business contributed revenue of 10.8 billion yuan in the third quarter, an increase of 89.8%. The total revenue of the business in the first three quarters of 2018 reached 28.9 billion yuan, which exceeded the total income of IoT and consumer goods business which peaked at 23.45 billion yuan. According to the financial report, Xiaomi AI Assistant Xiaoai’s monthly users also exceeded 34 million yuan in the quarter.