Xiaomi Reports 64% Revenue Growth & Acquires Deepmotion

Xiaomi Announces Strong Second Quarter Results

Xiaomi has announced a net income of $1.28 billion for the second quarter, alongside revenue totaling $13.56 billion. This follows a significant increase in the company’s global smartphone market share.

The company’s financial performance during the quarter, which concluded in June, demonstrated a 64% year-over-year increase in revenue. Furthermore, net income experienced a surge exceeding 80% compared to the same period last year.

Smartphone Revenue Drives Growth

Smartphone revenue reached $9.1 billion, fueled by a substantial rise in shipments. Xiaomi shipped 52.9 million smartphone units during the quarter.

According to market intelligence from Canalys, this performance propelled Xiaomi to become the world’s second-largest smartphone vendor, surpassing Apple in global rankings.

The restrictions imposed by the U.S. government on Huawei, a key competitor for Xiaomi within China, have contributed to the company’s expanding market share both domestically and internationally.

Expansion Beyond Smartphones

Revenue generated from Xiaomi’s Internet of Things and lifestyle products category also experienced considerable growth, increasing by 36% to $3.2 billion.

Following the release of its earnings report, Xiaomi announced the acquisition of Deepmotion, an autonomous driving technology startup established four years ago, for approximately $77.3 million.

This investment aligns with Xiaomi’s ambitious strategy to allocate $10 billion over the next ten years to the development of electric vehicles.

Joining the EV Race

Xiaomi is now among a growing number of Chinese technology companies entering the electric vehicle (EV) industry.

• Baidu, a leading Chinese search engine, previously announced plans to manufacture EVs in collaboration with Geely.
• Alibaba and SAIC Motor, a state-owned Chinese automaker, have formed a partnership to produce electric cars.
• Didi, a major rideshare company, and BYD, an EV manufacturer, are jointly developing a vehicle specifically for ride-hailing services.

As previously reported, Xiaomi stated that the acquisition of Deepmotion will expedite the development and launch of its own products.

The company anticipates that this strategic move will significantly reduce the time required to bring its innovations to market.