Kul Bhushan · · 2 min readXiaomi reports 64% rise in revenue in second quarter of 2021
Xiaomi reported a 64% jump in revenue in the second quarter of 2021 on the back of a strong growth from its core smartphone business.
The company noted that both total revenue and adjusted net profit reached record highs during the quarter. Xiaomi’s total revenue grew to 87.8 billion yuan (US$13.5 billion) from 53.5 billion yuan (US$8.2 billion) in the same period a year ago. Adjusted net profit for Q2 also rose 87.4% to 6.3 billion yuan (US$972 million).
Photo credit: Iryna Khabliuk/123RF
The smartphone business continued to be Xiaomi’s biggest revenue earner, as it contributed 59.1 billion yuan (US$9.1 billion) within the reporting period – an increase of 86.8%.
The company noted that its global shipments had reached 52.9 million units in the quarter, skyrocketing by 86.8%. It also pointed out the Canalys report that pegged Xiaomi as the no. 2 smartphone company globally, with a market share of 16.7%.
Besides smartphones, Xiaomi’s internet of things (IoT) business also showed a strong performance, with revenue from the unit going up 36% to 20.7 billion yuan (US$3 billion). The company also highlighted that the global shipments of its smart TVs had gone past 2.5 million units.
Revenue from internet services contributed 7 billion yuan (US$1 billion) as well, which the company says is a “record high” and represents a surge of 19.1%.
Following the earnings report, Xiaomi announced that it has acquired DeepMotion Tech, a US-based company focused on self-driving technology, for US$77.3 million.
The four-year-old startup focuses on high-precision mapping and position technology, among others.
The acquisition appears to be part of Xiaomi’s ambitious plan to become an electric vehicles (EV) major in the coming decade. Earlier this year, Xiaomi had said it would invest US$10 billion in EVs in the next 10 years.
Besides Xiaomi, other Chinese tech giants such as Baidu and Alibaba are also looking to tap into the EV space.
Currency converted from Chinese yuan to US dollar: US$1 = 6.48 yuan
Editing by Collin Furtado and Eileen C. Ang
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