Xiaomi reports 2023 profit of $2.67 billion, exceeding expectations

Xiaomi has just announced its 2023 audited results, recording total revenue of 37.52 billion USD, adjusted net profit increased by 126.3% to 2.67 billion USD. The increase in net profit exceeded market expectations and marked the second highest profit since the group was listed. As of the fourth quarter of 2023, Xiaomi's total revenue has grown for two consecutive quarters, reaching 10.13 billion USD, up 10.9% year-on-year, and its net profit increased by 236.1% to 680 million USD.

The company achieved rapid profit growth in the first half of 2023, followed by a recovery in quarterly revenue in the second half of the year. This was also the year that Xiaomi implemented its smart ecosystem strategy by launching the HyperOS operating system and EV (electric vehicle) technology.

In the smartphone segment, the company's global sales reached 145.6 million units, generating revenue of $21.83 billion and a gross profit margin of 14.6%. According to market analysis firm Canalys, Xiaomi has maintained its third-largest smartphone sales position globally for three consecutive years. For its premium phones, the average selling price of each phone in China increased by more than 19% year-on-year. According to third-party data, Xiaomi's share of the $550-$830 phone segment in 2023 is expected to increase by 9.2% year-on-year.

Xiaomi's IoT and lifestyle products generated revenue of $11.09 billion, with a gross profit margin of 16.3%, reaching a record high. By the end of 2023, the number of connected IoT devices (excluding smartphones, tablets, and laptops) on Xiaomi's AIoT platform reached 739.7 million, up 25.5% year-on-year. The company's smart electronics and home appliances product lines also achieved great success in terms of sales and revenue.

The number of users with five or more devices connected to the AIoT platform (excluding smartphones, tablets, and laptops) reached 14.5 million, up 25.3% year-on-year. The monthly active users (MAU) of the Mi Home app increased to 85.8 million in December 2023.