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Xiaomi said its first-half adjusted net profit jumped 69.5% to 8.4 billion yuan from a year ago, and revenue fell by 11.6% to 126.8 billion yuan as the global smartphone market continued to witness subdued demand.
Its adjusted net profit in the second quarter surged by 59% year-on-year to 5.1 billion yuan, even after expenses of 1.4 billion yuan linked to its smart electric vehicle business and other novel initiatives.
But second-quarter revenue dropped by 4% to 67.4 billion yuan with smartphone revenue down 13.5% to 36.6 billion yuan and global shipments declining by 15.8 percent to 32.9 million units.
The average selling price of Xiaomi’s smartphones rose by 2.8% from 1,081 yuan per unit in the second quarter of 2022 to 1,112 yuan per unit in the second quarter of 2023, largely attributed to the higher average selling price in mainland China.
During the period, Xiaomi smartphone shipments climbed to the second position in Europe, with a market share of 21.2% and it also secured the second spot in the Middle East with a market share of 17.1%.
Xiaomi’s research and development expenses totaled 4.6 billion yuan in the second quarter, reflecting a 21% rise from a year earlier. It expects its R&D investment to surpass 100 billion yuan over the five-year period of 2022 – 2026.
In addition, Xiaomi said it will maintain its investment focus on artificial intelligence.