Xiaomi Corporation, one of the biggest tech brands in China and the world, had a strong 2019.
In its 2019 revenue report, Xiaomi was able to gain RMB205.8 billion (~Php1.5 trillion) in sales. That’s a staggering 17.7% YoY growth compared to their RMB 174.9 billion revenue in 2018.
Minus the expenses and costs, Xiaomi is going home with RMB11.5 billion (~Php82.3 billion) of net profit. That’s an impressive 34.8% in YoY growth.
Xiaomi gained an impressive 112% of 9-year Compound Annual Growth Rate (CAGR). All that while maintaining its hardware business margin less than 1%. Bang-for-the-buck products are the reason why Xiaomi became really popular.
Xiaomi’s success is credited to its efforts investing a lot of money in research and development (R&D). In fact, for this year, Xiaomi aims to increase its research budget to more than RMB10 billion (~Php71 billion). That’s 53% more from last year’s RMB7.5 billion (~Php53.6 billion) budget.
With that, expect to see more smart devices from Xiaomi this 2020 and the years to come.
Xiaomi is now the #3 smartphone manufacturer in the world, according to Strategy Analytics.
As per the company, there are already 235 million smart devices connected to the Xiaomi IoT platform. A lot of users, 4.1 million to be exact, are enjoying Xiaomi products as they own five or more of them. That include products like smart vacuums, WiFi routers, and more.
Xiaomi is also pouring efforts on its AI assistant, which now has more than 60 million users.
Of course, Xiaomi’s mobile business is on a roll and still one of the biggest sources of income. They were able to record RMB122.1 billion (~Php873.7 billion). Selling 125 million units made them the 4th biggest smartphone brands in the world. Blockbuster hits like the Redmi Note 8 Pro are one of the big contributors to those numbers.
Xiaomi is also the world’s largest smart wearable brand, thanks to affordable devices like the Xiaomi Mi Band 4. Last year, their revenue for smart wearables reached to RMB62.1 Billion (~Php443.7 billion).
The company’s smart TV line is also gaining a lot of steam with 12.8 million units sold — amounting to 52% of YoY growth. Xiaomi is even the top smart TV vendor in mainland China and India.
Other than its hardware, Xiaomi’s software business is also recording impressive numbers. Xiaomi’s mobile platform, MIUI, now has 310 million monthly active users (MAU). While its smart TV and Mi Box MAU are now at 27.7 million (49.1%). With a growing number of users, Xiaomi recorded an increased advertising revenue by 43%.
You can check the full report above.