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Xiaomi Grew in Q1, but Not Because of Smartphones

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Xiaomi’s revenue grew 27.2% in Q1

Smartphone company Xiaomi (XIACF) released its first-quarter results yesterday. The company’s revenue rose 27.2% YoY (year-over-year) to 43.8 billion Chinese yuan (or $6.33 billion) during the quarter.

Xiaomi continued on its path of profitability, reaching a net profit of 3.2 billion yuan (or $462 million). On an adjusted basis, the company’s net profit grew 22.4% YoY to 2.1 billion yuan, or $300 million. It pledged to invest $1.48 billion in smartphones and the AIoT (Artificial Intelligence of Things). Revenue from Xiaomi’s IoT and Lifestyle segment, which includes a range of home appliances, grew 56.5% YoY to 12.0 billion yuan, or $1.73 billion.

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Xiaomi’s investment in other segments is paying off

Growth in smartphones, the company’s main revenue source, has slowed down. During the first quarter of 2019, the company smartphone revenue grew 16.2% YoY to 27 billion yuan, or $3.9 billion. The segment comprised 61.7% of the company’s overall revenue in the first quarter, compared with 67.5% in the same quarter last year.

According to Canalys, Xiaomi’s smartphone shipments fell 1.3% YoY during the first quarter. However, the company’s MIUI[1.MI User Interface] operating system now has an impressive 261 million monthly active users.

However, the company’s overall growth is driven by other segments. The company said that its global Smart TV shipments almost doubled YoY in the quarter to 2.6 million units. Revenue from the company’s Internet, advertising, gaming, other value-added services divisions also grew strongly.

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