Xiaomi Corp. posted profits of 14.6 billion RMB ($2.1 billion) in its first quarterly earnings call after the company went public in July. The group said it grew by 68% posting revenue of 45.2 billion RMB ($6.6 billion). The bulk of Xiaomi’s revenue this quarter came from its smartphone sales, which accounted for 30.5 RMB or 67% of its 45.2 RMB revenue this quarter. Revenue from just the smartphone segment grew YoY by a staggering 59%. Xiaomi said it sold 32 million units in the quarter, as against 22 million in the same quarter last year, representing a YoY growth of 45% units sold.

India market

Xiaomi’s international market accounted for 36% of total revenue in the quarter, with rapid growth in India; the company claims it was ranked first in the country by shipments in the quarter. The company overtook Samsung in 2017 to take the first place in the India’s smartphone market and solidified its position bagging 31% of the market share in Q1 2018, while Samsung captured 26% of the market, as reported by Livemint. The company’s overseas revenue grew 152% YoY to RMB16.4 billion. The company also said it grew significantly in Indonesia, South-east Asia’s richest economy, and made strides in Western Europe.

Internet services

Although internet services accounts for just 3.3% of the company’s total revenue, sales from the segment grew by 64% YoY to RMB4.0 billion, primarily on the back of monetization in China. Revenue from internet value-added services also grew 54% YoY to RMB1.5 billion. “The internet services growth is highly related to their smartphone sales, especially in China,” Elinor Leung, CLSA Ltd.’s head of Asian telecoms and internet research, told Bloomberg Television. “The good thing is that we’re still seeing good momentum in China although the shipment number is not going up a lot.”

Other takeaways

—The company’s IoT segment, whose main offerings are Smart TVs and laptops, accounted for 21% of the total revenue for the quarter. It grew by 104% YoY from RMB5.1 billion to RMB10.4 billion in the second quarter of 2018.
Monthly active users of MIUI increased 42% YoY from 146 million to 207 million. This can be seen as a parallehl development with increased smartphone sales and automatic user adoption.