Beijing-based consumer electronics and smartphone giant Xiaomi (HKEX: 1810) generated a record RMB 72.2 billion (USD 10.9 billion) in revenue during the third quarter, the company announced on Tuesday.
In addition to the 34% year-on-year (YoY) increase in revenue, the company also posted its highest-ever adjusted net profit of RMB 4.1 billion.
Xiaomi’s smartphone business, which generated RMB 47.6 billion in the September quarter compared to RMB 32.3 in the same period last year, grew largely on the back of an increased proportion of sales from premium devices like the Mi 10 series.
Alain Lam, Xiaomi’s newly appointed chief financial officer, told analysts on the earnings call, “In the third quarter, we regained our top three position globally, with an all-time high market share of 13.5% and year-over-year growth of 44.6%, which was the highest among the top five smartphone manufacturers.”
Xiaomi’s ascendancy in global smartphone shipments coincides with Shenzhen-based rival Huawei’s struggles, as Huawei’s global smartphone shipments declined by 23% YoY in the third quarter, according to Canalys.
Xiaomi’s overseas business also experienced a strong quarter, with Lam explaining, “Excluding India, where we have been the number one smartphone brand for 13 consecutive quarters, our overseas smartphone shipments almost doubled on a year-over-year basis.”
The company’s Internet of Things (IoT) business showed improvement from the second quarter when revenue was hampered by the pandemic-induced economic uncertainty, growing by 16.1% YoY to RMB 18.1 billion, compared to just a 2.1% YoY growth in the June quarter. Overseas sales of IoT products increased by 56.2% YoY.
In addition, Xiaomi’s number of connected IoT devices reached 289.5 million in the third quarter, while 5.6 million users owned more than five Xiaomi devices, up 59% YoY, indicating the positive development of the firm’s strategy to create an IoT ecosystem.
