Xiaomi Group reported its third-quarter 2019 results, with total revenue of RMB53.7 billion, up 5.5% YoY. Adjusted net profit was RMB3.5 billion, up 20.3% YoY, exceeding market expectations, while total cash reserves reached RMB56.6 billion. Xiaomi’s smartphone revenue was RMB32.3 billion in the third quarter, with global sales of 32.1 million units and the world’s fourth-largest market share, according to the company.
Gross margin in mobile phone business increased from 3.3% in the first quarter to 9.0% in the third quarter. As a result of the successful development of the mid- to high-end market, Xiaomi’s average mobile phone price (ASP) in mainland China increased by 4.6% year-on-year.
Xiaomi’s shipments in Western Europe surged 90.9 percent year-on-year, with smartphone shipments in Spain ranking second, with a 22.9 percent market share.
In the third quarter, Xiaomi IoT platform, with the number of connected devices worldwide, broke through the 200 million mark for the first time, reaching 210 million units, up 62.0% year-on-year. Artificial intelligence assistant Xiao Ai in September reached 57.9 million active users, up 68.6 percent year-on-year, making it one of the busiest AI assistants in the world.
As of the third quarter, Xiaomi’s overseas market revenue was RMB26.1 billion, up 17.2% YoY, accounting for 48.7% of total revenue, and Xiaomi’s business globalization deepened.