Smartphones and EVs Fueled Xiaomi Record Sales in 2024

Xiaomi returned to high-speed growth in 2024, with revenue and net profit reaching new highs on double-digit growth in smartphone sales and the release of its first electric vehicle, the SU7. Total revenue increased 35% year-on-year to CNY365.9 billion ($50.6 billion).

On an earnings call, company President Lu Weibing said Xiaomi stepped onto the fast track of growth with mobile phones, automobiles, IoT, and other businesses advancing in parallel. He added that the performance of its smartphone unit significantly outperformed the market as a whole.

Lu noted Xiaomi remained in the top three global smartphone shipments rankings for 18 consecutive quarters. CFO Alain Lam noted its annual gross profit margin for smartphones remained relatively healthy at 12.6% despite rising component prices.

Net profit for 4Q24 rose 90.4% to CNY9 billion, and revenue 48.8% to CNY109 billion. Smartphone sales increased 16% to CNY51.3 billion, with global shipments rising 5.3% to 42.7 million units. ASP rose 5.2% to CNY1,138. IoT and lifestyle revenue grew 51.7 percent to CNY30.9 billion. The number of connected IoT devices on its AIoT platform increased 22.3% to 904.6 million.

Revenue from its smart EV initiative reached CNY16.3 billion. It targets sales of 350,00 vehicles in 2025, up from 136,854 in 2024. The adjusted net loss of the unit and other new businesses for the full year was CNY6.2 billion. R&D spending in 2025 is forecast to rise to about CNY30 billion from CNY24.1 billion, with AI accounting for about a quarter.