Financial Highlights

Huawei reported a total revenue of RMB 704.2 billion (approximately USD 99.4 billion), marking a 9.6% increase from the previous year.

The company’s net profit rose dramatically to RMB 86.95 billion (approximately USD 12.28 billion), illustrating Huawei’s effective management and strategic realignment in response to external pressures and market dynamics.

The ICT infrastructure segment, a cornerstone of Huawei’s business, generated RMB 362 billion, a modest increase of 2.3% year-over-year. Meanwhile, the consumer business, including smartphones and other smart devices, brought in RMB 251.5 billion, surging by 17.3%.

The company’s burgeoning cloud computing and digital energy sectors witnessed growth rates of 21.9% and 3.5% respectively, further diversifying Huawei’s revenue streams. Notably, the smart car solutions business stood out with a remarkable growth of 128.1%, although from a smaller base, signaling Huawei’s strategic pivot towards new technology frontiers.

Strategic Investments in R&D

Huawei’s commitment to research and development (R&D) remained steadfast, with an investment of RMB 164.7 billion in 2023, accounting for 23.4% of its total revenue.

Over the past decade, the company has invested more than RMB 1.1 trillion in R&D, underscoring its long-term vision to lead in technological innovation and contribute to the global digital economy.

Expanding Global Footprint and Ecosystem

The report highlights Huawei’s efforts in expanding its global ecosystem and fostering open innovation. By the end of 2023, Huawei Cloud boasted over 6 million developers and more than 40,000 partners worldwide, creating a vibrant and innovative digital ecosystem.

Future Outlook

Looking ahead, Huawei remains optimistic about its future growth prospects. The company plans to continue its investment in core ICT technologies and platforms, enhancing its product and service offerings across different sectors.

Huawei’s chairman, Hu Houkun, emphasized the importance of quality, innovation, and open collaboration with partners to create greater value for customers and society at large.

Strategic Moves: EV Sector and Smartphone Market

Xiaomi’s entry into the smart Electric Vehicle (EV) market and continuous innovation in the smartphone segment have been central to its financial success.

The company retained its position as the third-largest smartphone vendor globally, with a total shipment of approximately 145.6 million units.

A notable strategy was the premiumization of its smartphone offerings, which led to an over 19% increase in the average selling price in mainland China.

Growth in IoT and AIoT Platforms

Revenue from Xiaomi’s IoT and lifestyle products reached RMB 80.1 billion, with a gross profit margin of 16.3%.

The number of connected IoT devices on Xiaomi’s AIoT platform as of December 31, 2023, stood at 739.7 million, a 25.5% increase year-over-year.

This expansion is reflective of Xiaomi’s strong position not only in the domestic market but also internationally, with significant presence and market share growth in various regions including the Middle East, Latin America, Africa, and Southeast Asia.

Future Directions: R&D and Global Technology Leadership

Xiaomi announced its strategic goals for 2020–2030, emphasizing long-term investment in foundational core technologies to assert its leadership in global tech innovations.

The company’s R&D expenses for 2023 amounted to RMB 19.1 billion, a 19.2% increase from the previous year, highlighting its commitment to innovation.

About Xiaomi Corporation

Xiaomi Corporation was founded in April 2010 and listed on the Hong Kong Stock Exchange in July 2018. With its core in smartphones and smart hardware connected by an IoT platform, Xiaomi aims to create quality products that enhance global living standards through innovative technology.

Introduction to Xiaomi e-commerce platform Youpin

However, the last quarter saw a 1.2% year-over-year increase in shipments, thanks to strong demand for premium smartphones, particularly in major cities. Apple’s strategic price cuts through third-party channels played a pivotal role in this growth, as did Honor’s reinforced channel partnerships and diversified product offerings, securing their respective top spots in the market.

A remarkable turnaround was Huawei’s re-entry into the top five, after more than two years, suggesting a revitalized competitive landscape. Despite these shifts, the final quarter of 2023 revealed nuanced dynamics: Apple and Honor slightly decreased their market shares, while Huawei saw a significant 36.2% increase, and the ‘Others’ category grew by 11.9%, indicating a diversifying market.

In contrast, Q4 2023 observed a 1.2% year-over-year uplift in shipments to 73.6 million units, halting a streak of declines over ten quarters. This rebound was spearheaded by robust demand for premium smartphones in major cities, while the market for lower-end phones lagged, despite their majority share in China’s market.

Arthur Guo, a senior research analyst at IDC China, highlighted Apple’s ascent to prominence amidst stiffened competition and subdued spending. Apple’s strategic price cuts through third-party channels spurred demand, securing its dominance.

Concurrently, Honor solidified its second position through enhanced channel partnerships and a diversified product suite, appealing to both high-end and mid-range segments.

A notable event in 4Q23 was Huawei’s resurgence in the top five after a hiatus exceeding two years, notes Will Wong, IDC Asia/Pacific’s senior research manager. This comeback intensifies competition in the world’s most significant smartphone arena.

The data reveals a mixed picture:

• Apple’s market share declined slightly from 20.6% in Q4 2022 to 20.0% in Q4 2023, indicating a -2.1% change.
• Honor also saw a slight dip from 17.1% to 16.8%, a -0.9% change.
• Vivo’s market presence shrank by -8.4%, dropping to 15.7% from 17.4%.
• Huawei defied the trend, soaring by +36.2% to reach a 13.9% market share, up from 10.3%.
• OPPO’s share fell by -16.1% to 13.7%, down from 16.5%.
• The ‘Others’ category grew by +11.9%, accumulating a 20.0% share, a significant collective rise.

The overall market dynamics for 2023 contrast with the final quarter, suggesting a nuanced recovery trajectory. While Apple and Honor lead the charge, with Huawei’s return signaling a potential market shakeup, companies like Vivo and OPPO may need to rethink strategies to maintain their footholds.

The Rise of Foldable Smartphones

In a notable development, IDC’s latest quarterly mobile phone tracker highlights the explosive growth of China’s foldable smartphone market, with shipments reaching approximately 2.77 million units in Q4 2023, a staggering 149.6% year-over-year increase.

This surge is propelled by new releases from Huawei, OPPO, and Honor, marking a continuous rapid growth trend for the fourth consecutive year, with a total of 7.01 million units shipped in 2023, up 114.5% from the previous year.

Improvements in hardware technology, software applications, and a drop in prices have enhanced the consumer experience and widened the foldable smartphone’s appeal. The price segment of $400-$600 is becoming increasingly populated, reflecting the segment’s potential for further growth.

Market Preferences and Performance

Consumers have shown a preference for horizontally folding devices over their vertically folding counterparts, despite the latter’s lower price points, due to the superior screen experience they offer.

Horizontally folding models, especially favored by the business sector for mobile office use, regained market share, reaching 68.1%, a 10.4 percentage point increase from the previous year.

In terms of market performance, Huawei dominated the foldable market with its Mate X5 series, capturing a 37.4% share.

OPPO followed with an 18.3% share, leading the vertically folding segment. Honor’s aggressive push in the second half of 2023 earned it third place, with a 17.7% share and the fastest growth rate of 467.0%. Samsung and Vivo rounded out the top five, facing stiff competition in the vibrant Chinese market.

Future Outlook

Arthur Guo of IDC China underscores the importance of balance between design and reliability in the foldable market.

As manufacturers vie for dominance in 2024, the foldable smartphone segment is set to continue its rapid expansion, driven by innovation and an increasing number of market players.

This evolving landscape suggests a dynamic future for China’s smartphone market, with foldable technology at the forefront of the next wave of mobile innovation.

This partnership, announced on January 25, aims to revolutionize AI capabilities in Samsung’s flagship smartphones. The integration of ERNIE into Samsung’s Galaxy AI enhances the S24 Series with features like intelligent summarization, advanced typesetting, and real-time call translation.

This collaboration brings ERNIE’s content understanding and generation capabilities to the Samsung Note Assistant, enabling it to translate and summarize extensive text efficiently.

The S24 Series boasts AI-driven features such as real-time speech-to-text transcription, speaker differentiation, multi-language translation, and automated meeting minutes generation, thus streamlining cross-language communication and office tasks.

The S24 Series introduces the “Circle to Search” feature, allowing intuitive searches across texts, images, or videos via simple hand gestures powered by Baidu Search for accurate and quick results.

Chen Yifan, Vice President of Baidu, highlights ERNIE Bot’s potential for diverse applications, especially given its multimodal data processing and personalization capabilities.

Launched in October of the previous year, ERNIE 4.0 marks Baidu’s most advanced AI foundation model, already serving over 100 million users. Baidu AI Cloud simplifies AI-native application development, offering ModelBuilder and AppBuilder tools to ease the creation of customized AI models.

Global market intelligence firm IDC predicts a surge in AI-enabled devices in China, forecasting that by 2024, over 70% of devices will feature AI functionality, representing 55% of the market.

The brand recognition of HarmonyOS has been steadily increasing year by year. From 50% in February 2021, it has risen to 85% in June of this year.

Currently, more than 700 million Harmony ecosystem devices are in use. These devices include smartphones, wearables, car cockpits, smart screens, tablets, smart home, headphones, and more.

In addition, the number of HarmonyOS developers has exceeded 2.2 million, with API calls reaching 59 billion times per day.

Regarding multi-device collaboration, there has been a 32% growth in fitness and health recording, and mobile application downloads have increased by more than 33%.

It is reported that Huawei began planning its proprietary operating system “HarmonyOS” in 2012 and officially released HarmonyOS in August 2019. After several iterations, HarmonyOS has gradually been applied to Huawei products such as smartphones, TVs, watches, and intelligent cockpits.

Huawei’s focus on HarmonyOS is a significant aspect of its strategy to create a complete ecosystem beyond smartphones. By covering various types of devices, such as wearables, car systems, and smart home appliances, HarmonyOS aims to provide a seamless user experience across the spectrum of everyday technologies.

The increase in brand recognition and the vast number of devices operating on HarmonyOS signal a positive trend for Huawei’s ambitions. With a growing developer community and a clear increase in application downloads, Harmony’s ecosystem seems to be maturing.

These achievements are essential for Huawei, particularly as international tensions and restrictions have impacted its operations in several markets. The development and success of HarmonyOS can give the company more control over its technology and reduce its dependence on foreign operating systems.

The latest updates shared during the Huawei Developer Conference 2023 mark a new milestone in the growth of HarmonyOS.

With significant advancements in multi-device collaboration and a surge in the developer community, Harmony is positioning itself as a comprehensive and versatile operating system. The continued expansion of Harmony’s ecosystem will likely play a crucial role in shaping Huawei’s future, strengthening its presence in various technological domains.

The top 5 smartphone vendors in the Chinese market in the fourth quarter of 2022 are Apple (20.6%), Vivo (17.5%), Honor (17.1%), Oppo (15.6%), and Xiaomi (11.6%).

In 2022, the top five smartphone vendors in the year are Vivo (18.6%), Honor (18.1%), Oppo (16.8%), Apple (16.8%), and Xiaomi (13.7%).

China smartphone shipment in Q3 2022; total shipments down 12%

In the third quarter of 2022, the Chinese smartphone market shipped approximately 71.13 million units, down 11.9% year-on-year, according to data from IDC.

Although the decline narrowed for the first time this year, market demand continued to be sluggish following the first half of the year; thanks to the early release of Apple’s iPhone 14 series and the return of Huawei’s Mate 50 series, the domestic smartphone market achieved a quarter-on-quarter growth of 6.0% in the third quarter.

In the third quarter, Vivo returned to first place in China’s domestic smartphone market in terms of shipments, with a market share of 20.0%. The sub-brand iQOO has been continuously recognized by the market with its good product strength and competitive pricing, and its market share has continued to increase, reaching 4.6% of the domestic market in the third quarter.

The Vivo X series continued the excellent performance of the previous quarter and maintained its leadership in the mid-to-high-end market of US$400-600

Honor and Oppo’s shipments ranked 2nd and 3rd in Q3 2022 with 17.9% and 16.3% market share respectively..

Apple’s ranking rose one place, and its market share increased month-on-month to 15.1%, the only top smartphone vendor to maintain year-on-year growth. Although the two models of the iPhone 14 Pro are still very popular, the iPhone 14 and the iPhone 14 Plus, which were only officially shipped in October, have limited appeal to consumers due to their small upgrades compared to the previous generation, while the iPhone 13 series is still favored.

Xiaomi smartphones shipped about 9 million units in the third quarter, accounting for 12.7% of the market.

In Q3 2022, China’s single-quarter shipments of foldable smartphones exceeded 1 million, a year-on-year increase of about 246%, the largest single-quarter shipment in history.

Strong brand and product power helped Huawei to remain in the first position in the domestic foldable screen smartphone market, with a market share of 44.9%.

Samsung’s two new products, Z Fold4 and Z Flip4, have significantly better sales than the previous generation, ranking second, accounting for 22.2% of the market share in the foldable smartphone segment.

The newly released X Fold+ series also helped Vivo to rise to third place in this market, with a market share of 11.9%. Xiaomi’s new MIX FOLD 2 has also won a better market reputation than the previous generation due to its thin and light appearance, and its market share has increased to 9.3%, ranking fourth.

China IoT market to account for 45% of global spend by 2025

China smartphone market share in Q2 2022

In the second quarter of 2022, China’s smartphone shipment reached about 67.2 million units, a year-on-year decrease of 14.7%, according to data from IDC. In the first half of the year, the domestic smartphone shipment totaled about 140 million units, a year-on-year decrease of 14.4%.

Honor ranked first in domestic market shipments in the second quarter, and Vivo ranked second. In the first half of the year, the domestic shipments of foldable smartphones exceeded 1.1 million, with a year-on-year increase of about 70%.

China smartphone market share in Q1 2022; Apple has 16.7% share

In the first quarter of 2022, China’s smartphone market saw about 74.2 million units shipment, a year-on-year decrease of 14.1%, according to data from IDC.

The impact of the continuous rebound of the epidemic on consumers’ budgets and the small upgrading range of new products have led to the continuous downturn of market demand.

The more uncertain overseas market prospect has led many mobile phone manufacturers to adopt more stable and conservative operation strategies, and the market will face great challenges throughout the year.

Oppo ranked first in terms of domestic smartphone shipment market share in the first quarter, followed by Honor, with a very high year-on-year increase, Vivo in the third place, Apple in the fourth place, and Xiaomi in fifth place.

At the same time, the negative impact of the current domestic epidemic on the logistics and supply side of the mobile phone market is relatively controllable, which brings about the delay in meeting part of the demand.

If there is no additional positive stimulus, the capacity of China’s smartphone market may fall below the 300 million mark in 2022, according to IDC.

Vivo has the largest market share of 19.7% by total smartphone sales, according to Counterpoint, followed by Oppo (18%), apple (17.9%), Honor (16.9%), Xiaomi (14.9%), and Huawei (6.2%). In the first quarter, domestic mobile phone sales fell 14% year-on-year to 74.2 million.

In 2021, the shipments of domestic brand mobile phones in China totaled 304 million, a year-on-year increase of 12.6%, accounting for 86.6% of the mobile phone shipments in the same period. In other words, nearly 87 people buy domestic mobile phones among every 100 people’s purchase.

In 2021, 5G mobile phones shipped 266 million units, with a year-on-year increase of 63.5%, accounting for 75.9% of mobile phone shipments in the same period. In November and December 2021, 5G mobile phones accounted for more than 80%.

In 2021, 329.3 million smartphones shipped in China, with a year-on-year (YoY) growth of 1.1%, according to IDC.

Throughout 2021, 404 new models of smartphones were listed, with a year-on-year increase of 11.0%, accounting for 83.6% of the number of new models listed in the same period. It can be seen that functional phones still have a huge audience.

Top 10 Smart City Forecast in China 2022-2025

Apple and Vivo took the top spot in the last quarter of 2021 and the full year 2021, respectively. Honor continued its momentum in Q4 2021 and gained another spot from the previous quarter. More intense competition is coming in 2022 according to IDC.

In 2021, Apple’s smartphone shipment reached more than 50 million and it also had the largest growth among the top 5 vendors. Honor continued its growth in Q4 2021 with the launch of the Honor 60 series and X30 series in December.

Vivo ranked first in full-year 2021 and achieve a better market position in the >US$400 market and online channels.

Oppo ranked the second spot in 2021, with the K, Reno, and Find series achieving a higher share of its portfolio compared to last year. In Q4, the launch of the Reno 7 series also strengthened Oppo’s position in the US$300-500 price segment.

Xiaomi ranked third in 2021.

In 2021, the Chinese market shipped 1.5 million foldable smartphones with only 0.5% share.

By the end of 2020, there were 1,775.98 million phone subscribers in China, of whom 1,594.07 million were mobile phone subscribers. Mobile phone coverage reached 113.9 units per 100 persons.

The number of 5G plan users of China Unicom reached 70.83 million by the end of 2020, with a penetration rate of 23%, higher than the industry average of 20%.

In contrast, the number of 5G users of China Mobile and China Telecom has reached 165 million and 86.5 million respectively, accounting for 17.5% and 24.6% of the total number of users.

The number of fixed broadband internet users reached 483.55 million, an increase of 34.27 million over the end of 2019. Of this total, fixed fiber-optic broadband internet users totaled 454.14 million, an increase of 36.75 million.

The mobile internet traffic in 2020 was 165.6 billion gigabytes, up by 35.7 percent over the previous year. The number of internet users was 989 million at the end of 2020, 986 million of which were mobile internet surfers.

Internet penetration reached 70.4%; 55.9 percent in rural areas.

Top 10 predictions for China’s blockchain market 2021-2025

Globally, the key benefits of 5G other than speed gains (e.g. network slicing, edge computing, and low-latency services) are not widely appreciated, with many companies believing 4G is ‘good enough’.

But China is a clear exception. Early partnerships and trials from local operators have paid dividends, as evidenced by the widespread intent among companies in the country’s industrial sector to utilize 5G.

Chinese operators are also leading the charge for standalone (SA) 5G, which will help deliver the key benefits of 5G for enterprises.

Awareness and knowledge of 5G are rising as hype makes way for reality.

Chinese consumers are among the most excited by the prospect of 5G. They are generally more optimistic than other markets about the benefits of 5G, with greater expectations of lower service costs, innovative services and new connected devices.

In addition, consumers in China are likely earlier adopters of 5G (versus the US, Japan, and Europe) and seem the most willing to pay more for 5G services – a key driver of potential 5G consumer revenue uplift.

4G is by far the dominant mobile technology across China, accounting for more than 80% of total connections (excluding licensed cellular IoT). However, 4G’s share will peak in 2020 (at 82%) as 5G grows significantly.

Several 5G smartphones have been launched, many by local OEMs, and Chinese consumers are among the most keen to upgrade to 5G.

As a result, China will account for 70% of global 5G connections in 2020, and 5G adoption will grow to just under 50% by 2025, placing the country among the leading nations along with South Korea, Japan and the US.

To support this generational shift and drive consumer engagement, Chinese operators are expected to invest more than $180 billion between 2020 and 2025 in mobile capex, roughly 90% of which will be on 5G networks.

Despite some financial headwinds – including market saturation, increasing competition and the country’s ‘speed upgrade and tariff reduction’ policy – China’s mobile revenue remains stable.

Financials will recover in 2020 and 2021, and revenue will rise steadily at around 1% per year to 2025, largely because of growing revenues in enterprise IoT and new 5G services.

By the end of 2019, 1.2 billion people subscribed to mobile services across China.

This accounts for 82% of the region’s population and places China among the world’s most developed markets. As with all advanced markets, adding new subscribers is increasingly difficult, with the cost of reaching rural populations hard to justify against a challenging financial backdrop for operators.

Despite this, there will be around 60 million new subscribers by 2025.

Since 2012, the number of people subscribing to the mobile internet across China has doubled to more than 900 million. By 2025, nearly 260 million people will start using the mobile internet for the very first time, almost halving the unconnected proportion of the population to 22%.

Mobile continues to make a significant contribution to the Chinese economy.

In 2019, mobile technologies and services generated $759 billion of economic value added (5.4% of GDP) across China. This figure will surpass $900 billion by 2024 as the region increasingly benefits from the improvements in productivity and efficiency brought about by the increased take-up of mobile services.

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Benefiting from the continued expansion in its global smartphone market share, the monthly active users (“MAU”) of MIUI increased to 330.7 million, an increase of 26.7% year-over-year.

As of March 31, 2020, the number of connected IoT devices (excluding smartphones and laptops) on Xiaomi IoT platform reached 252.0 million, an increase of 42.6% year-over-year.

Xiaomi AI assistant Xiao Ai had 70.5 million MAU in March 2020, an increase of 54.9% year-over-year.

Revenue from its internet services segment in Q1 2020 increased by 38.6% year-over-year to RMB5.9 billion, accounting for a record high of 11.9% of its total revenue. Revenue from overseas markets in Q1 2020 totaled RMB24.8 billion, an increase of 47.8% year-over-year, for the first time, accounting for half of its total revenue.

According to Canalys, Xiaomi smartphone shipments in Western Europe increased by 79.3% year-over-year and it attained the largest market share in Spain for the first time.

Xiaomi Smartphone

In Q1 2020, revenue from Xiaomi’s smartphone segment totaled RMB30.3 billion, an increase of 12.3% year-over-year. It shipped 29.2 million units of smartphones in Q1 2020, an increase of 4.7% year-over-year.

According to Canalys, in the first quarter of 2020, Xiaomi ranked 4th globally in terms of smartphone shipments, and Xiaomi’s market share rose to 11.1%. Xiaomi was one of only two of the top five smartphone companies worldwide to maintain year-over-year growth in shipments.

In February 2020, Xiaomi launched Mi 10 and Mi 10 Pro. Shipments of Mi 10 and Mi 10 Pro exceeded 1 million units two months after their launch, enabling the Xiaomi brand to further strengthen its position in the premium smartphone market.

Mi 10 and Mi 10 Pro were launched overseas in late March with prices starting at €799 and €999, respectively. Boosted by Xiaomi’s premium smartphone models, the average selling price (“ASP”) of Xiaomi’s smartphones increased by 7.2% year-over-year in Q1 2020.

The ASP of Xiaomi’s smartphones in mainland China and overseas markets increased by 18.7% and 13.7% year-over-year respectively.

In April 2020, Xiaomi launched Mi 10 Lite Zoom Edition to target the younger consumer segments. With prices starting at RMB2,099, it features a 50x periscope telephoto lens camera and other advanced technologies. Mi 10 Lite 5G was launched in March 2020 in overseas markets, with prices starting at €349.

The Redmi brand continued to introduce highly competitive products at different price points. In March 2020, Redmi launched its flagship K series Redmi K30 Pro and Redmi K30 Pro Zoom Edition, sporting premium features including the Snapdragon 865 processor, LPDDR5, and UFS 3.1, while also featuring a pop-up camera, allowing Xiaomi’s customers to enjoy a full flagship experience at a reasonable price.

On the back of the highly popular Redmi Note 8 series, the second best-selling smartphone model globally in Q1 2020 according to Canalys, Xiaomi launched Redmi Note 9S and Redmi Note 9 Pro in overseas markets, carrying on the ultimate price-performance value proposition of the Redmi brand.

In April 2020, Xiaomi released MIUI 12, the latest version of Xiaomi’s smartphone operating system. Equipped with Xiaomi’s proprietary Mi Light Cone Animation Framework, MIUI 12 offers remarkable animation and a stunning visualized user interface.

In addition, MIUI 12 has introduced a privacy and data protection framework, which enables users to have full visibility of sensitive data retrieval, take control over app permissions, and mask their identity information to remain incognito. MIUI 12 is the world’s first mobile operating system to pass the TÜV Rheinland “Enhanced Privacy Protection for Android Systems” test.

Xiaomi IoT

In Q1 2020, revenue from Xiaomi’s IoT and lifestyle products segment was RMB13.0 billion, increase of 7.8%. Xiaomi’s smart TV business continued to maintain its leading position in both mainland China and overseas markets.

In Q1 2020, despite the overall decline in TV shipments globally due to the pandemic, Xiaomi’s global shipments of smart TVs still increased by 3.0% year-over-year to 2.7 million units.

According to All View Cloud (“AVC”), in Q1 2020, Xiaomi’s TV shipments in mainland China ranked 1st for five consecutive quarters and its global TV shipments ranked among the top five.

In March 2020, Xiaomi launched Redmi Smart TV Max 98”, priced from RMB19,999 (about US$2,815), significantly lower than other ultra-large TVs, bringing high-end TVs to the mass market.

In Q1 2020, Xiaomi continued to expand Xiaomi’s IoT product portfolio and promote the interconnectivity of Xiaomi’s AIoT platform.

In February 2020, Xiaomi introduced Mi AIoT Router AX3600, a WiFi 6 enabled AIoT router, which greatly improves upstream and downstream network speeds, making Xiaomi the first brand in China to support WiFi 6 technology from terminals to routers.

In addition, Xiaomi also launched Mi 65W Fast Charger with GaN Tech, Redmi Smart Display 8” and Mi Bluetooth Speaker with Wireless Charging, all of which enjoyed widespread popularity.

The sales of Xiaomi’s routers increased by 124.0% year-over-year in Q1 2020 and according to AVC, ranked 2nd in mainland China in terms of online router shipments. Sales of Xiaomi’s Xiaomi TWS Earphones, Mi Band, Mi Electric Scooter and Mi Robot Vacuum Cleaner increased by 619.6%, 56.0%, 40.7% and 40.0% year-over-year, respectively.

According to Canalys, Xiaomi ranked 1st in terms of wearable band shipments and 3rd in terms of True Wireless Stereo (“TWS”) earbuds shipments globally in 2019. According to iResearch, Xiaomi also ranked 1st in terms of electric scooter shipments globally in 2019.

Xiaomi Internet Services

In Q1 2020, revenue from Xiaomi’s internet services segment reached RMB5.9 billion, representing an increase of 38.6% year-over-year, accounting for a record high of 11.9% of Xiaomi’s total revenue.

User activity and time spent on Xiaomi’s devices increased in Q1 2020. In March 2020, the MAU of MIUI increased by 26.7% year-over-year to 330.7 million, while the mainland China MAU of MIUI reached 111.5 million.

In Q1 2020, advertising revenue was RMB2.7 billion, an increase of 16.6% year-over-year.

In Q1 2020, online gaming revenue increased by 80.5% year-over-year to RMB1.5 billion, mainly due to the fast-growing online gaming market in mainland China and higher online gaming average revenue per user from Xiaomi’s premium smartphone users.

In Q1 2020, internet services revenue outside of advertising and gaming from mainland China smartphones, including those generated from the Youpin e-commerce platform, fintech business, TV internet services and overseas internet services, increased by 71.5% year-over-year and accounted for 38.1% of Xiaomi’s total internet services revenue.

Xiaomi’s Youpin e-commerce platform continued to broaden its offerings and provide uninterrupted services to customers. The number of new users increased significantly in Q1 2020, laying a strong foundation for further expansion.

In March 2020, MAU of Xiaomi’s smart TVs and Mi Box reached 30.4 million, representing an increase of 46.8% year-over-year. As of March 31, 2020, the number of paid subscribers increased by 53.7% year-over-year to 4.3 million.

In Q1 2020, the MAU of Mi Browser on Xiaomi smartphones in the aggregated overseas market ranked 1st among all browsers. These initiatives increased Xiaomi’s average revenue per user in the overseas market.

Introduction to Xiaomi’s e-commerce platform Youpin

For Q4 2019, Xiaomi achieved the highest year-over-year growth in smartphone shipments among the top five smartphone companies, according to Canalys.

In December 2019, monthly active users (“MAU”) of MIUI increased by 27.9% year-over-year to 309.6 million. As of December 31, 2019, the number of connected IoT devices (excluding smartphones and laptops) on its IoT platform reached 234.8 million, an increase of 55.6% year-over-year.

Xiaomi’s AI assistant had 60.4 million MAU in December 2019, an increase of 55.7% year-over-year. Xiaomi further expanded its global footprint with overseas revenue growing significantly, accounting for 44.3% of its total revenue in 2019.

Overseas revenue was RMB91.2 billion, an increase of 30.4% year-over-year. As of December 31, 2019, its products were sold in more than 90 countries and regions. According to Canalys, its smartphone shipments ranked the top five in 45 countries and regions in 2019.

In 2019, Xiaomi’s research and development expenses increased by 29.7% year-over-year to RMB7.5 billion. As of December 31, 2019, its total cash resources amounted to RMB66.0 billion.

Xiaomi Smartphone

In 2019, revenue from its smartphone segment reached RMB122.1 billion, an increase of 7.3% year-over-year. In Q4 2019, revenue from its smartphone segment was RMB30.8 billion, an increase of 22.8% year-over-year.

Xiaomi captured over 9% of the global smartphone market share in Feb 2020. Find out more here.

For 2019, Xiaomi shipped approximately 124.6 million units of smartphones, while in Q4 2019, shipments were approximately 32.6 million, an increase of 30.5% year-over-year.

In 2019, its dual-brand strategy showed encouraging results.

The Xiaomi brand focused on pioneering advanced technologies and successfully established a solid foothold in the premium smartphones segment.

The Redmi brand, on the other hand, continued to pursue the ultimate price-performance ratio across different price points and make innovative technologies readily accessible to the mass market.

With the launch of Mi 9 Pro, Mi CC9 Pro and the world’s first smartphone featuring surround display, Mi MIX Alpha, Xiaomi developed strong technological fundamentals in wireless charging, imaging, 5G technology, and next-generation smartphone design and are well poised to capture opportunities brought about by 5G technology in 2020.

In February 2020, Xiaomi launched its flagship 5G smartphone models the Mi 10 and Mi 10 Pro.

According to Canalys, the Redmi Note 7 was the best-selling smartphone model among all models made by Chinese companies in terms of global shipments in 2019.

In December 2019, Redmi launched its first 5G smartphone, the Redmi K30 5G, with pricing starting from RMB1,999, making it the first 5G smartphone priced below RMB2,000. Xiaomi believes the competitive pricing will accelerate the adoption of 5G smartphones by a larger population, enabling more people to enjoy leading technologies.

In 2019, the average selling price of its smartphones increased by 2.2% compared to 2018 and the gross margin of the smartphone segment increased to 7.2% from 6.2% in 2018.

In 2020, Xiaomi will continue to focus on 5G smartphones development and strengthen its presence in the premium smartphones segment, which will lead to further ASP expansion.

IoT and lifestyle products

In 2019, revenue from its IoT and lifestyle products segment was RMB62.1 billion, an increase of 41.7% year-over-year.

In Q4 2019, revenue from its IoT and lifestyle products segment was RMB19.5 billion, an increase of 30.5% year-over-year.

AIoT market in China has reached 380.8 billion yuan in 2019, with an increase of over 47%; check out the forecast for 2020-2022 here.

Xiaomi achieved leading positions in key IoT products that are controlling hubs for its AIoT platform, including TVs, wearable devices and smart speakers.

In 2019, its global TV shipments reached 12.8 million units, an increase of 51.9% year-over-year. In mainland China, its annual smart TV shipments exceeded 10 million units, which Xiaomi believe set an unprecedented record in China’s TV industry.

According to AVC, its TV shipments ranked first in mainland China and fifth globally in 2019. Xiaomi also ranked first in India in terms of smart TV shipments for seven consecutive quarters as of Q4 2019 according to IDC.

According to Canalys, Xiaomi is the world’s largest smart wearable device (including smartwatch and wristband) brand in 2019 by shipments. Xiaomi also ranked the top three in terms of smart speaker shipments in mainland China in 2019 according to IDC. Check out China’s wearable device in 2019.

Xiaomi also continued to expand its product portfolio in key smart home products by launching new products including washing machines and refrigerators.

In 2019, its IoT products won over 50 renowned design awards around the world. Recently, its Mijia Smart Baseboard Heater won the 2020 Red Dot: Best of the Best Award and Mijia Handheld Wireless Vacuum Cleaner won the 2020 iF Design Gold Award.

Xiaomi Internet services

In 2019, revenue from internet services reached RMB19.8 billion, an increase of 24.4% year-over-year. For the fourth quarter, revenue was RMB5.7 billion, an increase of 41.1% year-over-year.

In December 2019, MAU of MIUI increased by 27.9% year-over-year to 309.6 million with mainland China’s MAU of MIUI standing at 109.0 million.

In Q4 2019, advertising revenue was RMB3.0 billion, an increase of 17.8% year-over-year.

The MAU of its news feed service increased by 32.6% year-over-year to 78.7 million in December 2019. This was further bolstered by its efforts in increasing monetization through the optimization of its recommendation algorithms and diversification of its advertising customer base by expanding into more vertical industries.

In Q4 2019, online gaming revenue increased by 44.4% year-over-year to RMB874.4 million, mainly due to the strong performance of many popular games operating on its platform.

Diversification of its internet services has become a key growth driver of its internet services revenue.

In Q4 2019, its internet services revenue outside of advertising and gaming from mainland China smartphones, including those generated from the Youpin e-commerce platform, fintech business, TV internet services and overseas internet services, increased by 112.6% year-over-year and accounted for 43.0% of its total internet services revenue.

In 2019, the GMV of its Youpin e-commerce business grew rapidly, with annual GMV surpassing RMB10.0 billion. During the year, Xiaomi has enlarged its merchandise portfolio, insisted on selecting high-quality goods that appeal to its customers and increased its efforts in new customer acquisition.

As a result, the number of active buyers on Youpin showed strong growth momentum.

In Q4 2019, its fintech business delivered strong revenue growth, mainly driven by the growth in its consumer finance business. In January 2020, Xiaomi Finance successfully obtained a consumer-financing license from the China Banking and Insurance Regulatory Commission.

Xiaomi will continue to strengthen risk controls and strictly follow regulatory rules to maintain the healthy growth of its fintech business.

In Q4 2019, its TV internet services grew quickly primarily driven by the growth of its subscription business. In December 2019, MAU of its smart TVs and Mi Box were approximately 27.7 million, an increase of 49.1% year-over-year.

As of December 31, 2019, Xiaomi had 3.7 million paying subscribers, an increase of 62.9% year-over-year. Lastly, its overseas internet services business also witnessed rapid growth.

In India, 10 of its mobile apps recorded MAU of over 50 million in December 2019, including its Mi Browser, Mi Video and GetApps (an overseas version of Mi App Store).

Overseas markets

In 2019, overseas revenue was RMB91.2 billion, an increase of 30.4% year-over-year.

In Q4 2019, overseas revenue increased by 40.7% year-over-year to RMB26.4 billion, accounting for 46.8% of total revenue for the period. In Q4 2019, Xiaomi was the largest smartphone brand in India by shipments for the tenth consecutive quarter, capturing a market share of approximately 28.7%, according to IDC.

In Western Europe, Xiaomi continued to expand its market share.

According to Canalys, its smartphone shipments in the region grew 115.4% year-over-year in Q4 2019. In Spain, Xiaomi was the second-largest smartphone maker by shipments, achieving 65.7% year-over-year growth with a 22.8% market share.

Xiaomi ranked fourth in both France and Italy, with its smartphone shipments increasing by 69.9% and 206.2% year-over-year, respectively.

In 2019, its overseas IoT revenue grew rapidly, driven by the robust sales of its best-selling IoT products in overseas markets, including its smart TVs, wristbands, TWS earphones, and electric scooters.

In 2020, Xiaomi plans to step up its efforts in promoting its popular IoT products to more countries and regions.

Impact of the COVID-19 outbreak

In terms of the supply chain, Xiaomi experienced a temporary disruption in production in February and March 2020, due to the extended shutdown of Chinese factories.

However, its production capacity has recovered to 80%–90% of normal levels as of the date of this announcement. For its mainland China market, during the peak of the outbreak, its offline sales were affected as most of its stores were closed or operated at shortened hours with significantly lower customer traffic.

However, Xiaomi was comparatively less impacted due to its strength in online channels.

Xiaomi has seen smartphone shipments rebounding quickly in late March 2020, showing the resilience of smartphone demand.

For its overseas market, given that the epidemic is still affecting countries and regions around the world as of the date of this announcement, Xiaomi is closely monitoring and assessing its impact, which will likely defer the overall consumption in the affected countries.

While its overseas demand will undoubtedly be affected, particularly in the second quarter of 2020, Xiaomi believes the overall impact is currently manageable.

Investments

As of December 31, 2019, Xiaomi had invested in more than 290 companies with an aggregated book value of approximately RMB30.0 billion.

Xiaomi expanded its investment into supply chain companies to strengthen its partnership with key component suppliers, enhance its sourcing and manufacturing abilities in advanced technology and facilitate the development of the industries, in particular around 5G, IoT, AI, integrated circuits, advanced manufacturing, and industrial internet.

An increasing number of its investee companies have gone public.

In February 2020, Roborock, one of its investee companies, was successfully listed on the Science and Technology Innovation Board of Shanghai Stock Exchange (“STAR Market”) in China, becoming its first ecosystem investee company to list on the STAR Market.

In Q4 2019, net gains on disposal of investments (after tax) were RMB869.0 million.

Mi 10 Pro achieved a score of 124 for camera and 76 for audio on DXOMARK, ranking the flagship smartphone first in both the camera and audio categories.

The Mi 10 series starts from RMB 3,999 (US$572), and will be available in mainland China starting February 24, 2020.

The Mi 10 series is powered by the Qualcomm Snapdragon 865. As the flagship mobile platform of the year, the Snapdragon 865 is the leading 5G platform to-date, offering staggering multi-gigabit 5G connectivity, it also delivers top-notch performance in terms of CPU, GPU, camera, and AI capabilities.

The Snapdragon 865 uses a three-cluster architecture and has a maximum clock speed of 2.84GHz. With the new Kryo 585 being based on the Cortex-A77 architecture, which is the latest generation of ARM processor architecture, CPU performance is increased by 25% compared to its predecessor.

The new Adreno 650 graphics processor also has a 25% upgrade in rendering speed, with a decreased energy consumption of 35%.

The fifth-generation AIE artificial intelligence engine enables AI capabilities that is 2x more powerful than the predecessor, which provides Mi 10 with better performance in videography, imagery, and AI processing applications.

Mi 10 series comes with the latest LPDDR5, supporting a maximum transmission rate of 5500Mbps, and boasting up to 50% improvement in performance while still remaining power efficient.

Paired with the industry’s fastest UFS 3.0 flash memory, and adopting the new Write Turbo technology, Mi 10 series can achieve a maximum sequential write speed of up to 730MB per second.

The series also uses the latest Wi-Fi 6 technology, with speeds up to 9.6Gbps which provides an 2.7x increase compared to Wi-Fi 5, also supporting 8×8 MU-MIMO technology, the download speed for multiple connected devices increases by 100%.

In terms of heat dissipation, Mi 10 series offers the most sophisticated cooling system to date: a 3000mm² super large vapor chamber, graphene, and 6-layer graphite structure. It also includes copper foil heat sinks and thermal gel to improve the overall cooling capability of Mi 10, and ensures the device stays cool for extreme performance and 5G high-speed download.

Mi 10 series features a 108MP main camera with a 1/1.33” ultra large sensor. It is also among the first to support 8K ultra-clear video recording in 7680×4320 ultra-high-resolution, users can also capture ultra-clear 33MP photos while recording in 8K by simply tapping on the screen. With both OIS and EIS support, Mi 10 series ensures stable video capture even in extreme conditions.

In addition to a 108-megapixel main camera, Mi 10 Pro also includes a classic 50mm portrait lens with 2x optical zoom, a telephoto lens with 10x hybrid zoom, and a 20MP ultra wide-angle lens, each of which is of flagship level, and with the camera system supported by dual OIS.

Aside from camera, Mi 10 series offers by far the strongest audio configuration and capabilities of any Xiaomi device. The audio system is equipped with symmetrical dual 1216 linear speakers with large 1.2cc sound cavity, which makes the output volume 100% higher than its predecessor.

Mi 10 series offers AI audio tuning to adapt to the different usage and playback scenarios for better sound quality, delivering an unmatched immersive audio experience.

Mi 10 series sports a 6.67 ”AMOLED curved DotDisplay, with up to 800nit typical and a peak brightness of up to 1200nit, and a contrast ratio of up to 5,000,000:1, which delivers lively and vivid images.

The display also supports 90Hz refresh rate and 180Hz touch sampling rate, delivering an unprecedented smooth experience.

Mi 10 Pro also offers the highest level of color accuracy in the industry, with a JNCD <0.55 and △E <1.1. Each device undergoes careful calibration with seventy-two color analyzers and two spectroradiometers in eighteen production lines prior to sales.

This ensures Mi 10 series displays can accurately reproduce colors as they are intended.

In addition, Mi 10 Pro comes with a 4500mAh high-capacity battery and features 50W wired fast charge, 30W wireless fast charge, and up to 10W reverse charging. The 50W wired fast charge supports charging to 100% in 45 minutes while the 30W wireless charging can charge to 100% in 65 minutes. A 65W charging adapter comes in-box.

Mi 10 comes in glossy black, blue, and gold, with a thickness of 8.96mm and bottom bezel as small as 3.32mm. Mi 10 Pro, on the other hand, features a matte design in blue and white with AG coating for a more premium hand feel and minimizes the chance of leaving fingerprints behind.

Other notable features on the Mi 10 series include in-screen fingerprint sensor for quick unlock, IR blaster for easy home appliances remote control, multifunctional NFC for swift payment, and a linear haptic motor for realistic touch response.

Mi 10 starts at RMB 3,999 and will officially launch on February 14 in three variants: 8GB + 128GB, 8GB+256GB, and 12GB+256GB.  Mi 10 Pro starts at RMB 4,999 and will be available in three variants: 8GB+256GB, 12GB+256GB, and 12GB+512GB.

Mi AIoT Router AX3600: The first router to support Wi-Fi 6 and Qualcomm platform

The event also introduced Xiaomi’s first router that supports Wi-Fi 6 technology – the Mi AIoT Router AX3600.

Packed with Qualcomm’s quad-core processor, six-channel quality signal amplifiers, and an independent AIoT smart antenna, the Mi AIoT Router AX3600 provides blazing connection speeds of up to 3000 Mbps, leading the router products in the 5G era.

It also supports network connection in one simple click for Xiaomi smart products. Priced at RMB 599, Mi AIoT Router AX3600 is available for purchase at Xiaomi authorized channels, starting February 13.

Mi Bluetooth Speaker with Wireless Charging

Xiaomi introduced a Bluetooth speaker that combines wireless charging for smartphones and Bluetooth speakers.

The device incorporates a built-in wireless charging function and a 20° elevation design on its front, allowing users to charge their smartphones while consuming media with ease.

Aside from charging Mi 10, Mi 10 Pro, and Mi 9 Pro with a maximum 30W wireless charging, Mi Bluetooth Speaker is also capable of charging Qi compatible devices, such as Samsung S10 and iPhone 11.

Mi Fast Link Technology is also enabled to ensure smooth connection with NFC and MIUI smartphones. Moreover, when the device is charging Mi 10 or Mi 10 Pro, the smartphone will automatically switch on XiaoAi AI ambient display after the screen is locked, turning the smartphone and the speaker into a XiaoAi AI assistant with touch screens.

Priced at RMB 249, Mi Bluetooth Speaker with Wireless Charging will be available for purchase from mi.com and Mi Home beginning February 18.

Xiaomi Financial Results

In Q3 2019, Xiaomi achieved RMB53.7 billion in total revenue, representing an increase of 5.5% YoY. Gross profit increased to RMB8.2 billion, representing a year-over-year increase of 25.2%. Adjusted net profit increased by 20.3% year-over-year to RMB3.5 billion. As of September 30, 2019, Xiaomi’s total cash resources amounted to RMB56.6 billion.

In Q3 2019, Xiaomi continued to execute Xiaomi’s “Smartphone + AIoT” dual-engine strategy and it yielded positive results. Xiaomi’s user base and the number of devices connected to Xiaomi’s platform have continued to grow robustly.

In September 2019, monthly active users (“MAU”) of MIUI reached 291.6 million, representing an increase of 29.9% over the corresponding period in the previous year.

The number of connected IoT devices (excluding smartphones and laptops) on Xiaomi’s IoT platform reached 213.2 million as of September 30, 2019, representing year-over-year growth of 62.0%. Meanwhile, Xiaomi’s AI assistant had 57.9 million MAU in September 2019, representing a year-over-year increase of 68.6%.

Xiaomi’s products were well received by consumers during the Double 11 Singles’ Day shopping festival in China. Xiaomi’s total payment for sales across all platforms and channels surpassed RMB6.1 billion in China.

Xiaomi’s flagship store on the Tmall platform achieved a total payment for sales of more than RMB2.1 billion, ranking 1st among all brand flagship stores on Tmall for the 7th consecutive year since Xiaomi first participated in the Singles’ Day shopping festival in 2013.

In October 2019, Xiaomi made its debut on the Fortune Future 50 list, ranking 7th, and was the second-highest ranked among all Chinese companies on the list. Furthermore, Xiaomi ranked 57th on Forbes’ Top 100 Digital Companies List.

Xiaomi Smartphones

Xiaomi’s smartphone segment recorded RMB32.3 billion in revenue in Q3 2019. Xiaomi’s smartphone sales volume in Q3 2019 reached 32.1 million units. According to Canalys, Xiaomi ranked 4th globally in terms of smartphone shipments in the third quarter of 2019, with a market share of 9.2%.

Following the introduction of Mi MIX 3 5G in Europe in February 2019, Xiaomi launched Xiaomi’s first 5G smartphone in China, Mi 9 Pro 5G, in September 2019, marking another milestone in its 5G technology development. Mi 9 Pro 5G was well received by the market.

In 2020, Xiaomi expects to launch ten or more 5G smartphone models to capture the 5G smartphone replacement cycle, starting from China.

In Q3 2019 , Xiaomi continued to advance technologically and create breakthroughs. In September 2019, Xiaomi released Xiaomi’s concept smartphone, Mi MIX Alpha, a futuristic 5G smartphone featuring the world’s first surround display and a screen-to-body ratio of 180.6%, demonstrating Xiaomi’s continuous efforts in exploring cutting-edge technology. Xiaomi introduced Mi CC9 Pro in November 2019, which is the first mass-produced smartphone to carry a 108MP penta-camera.

It is also capable of up to 10x hybrid zoom and up to 50x digital zoom. Mi CC9 Pro Premium Edition achieved a DXOMARK score of 121 for overall camera performance, ranking 1st globally at the time of launch. It also achieved a DXOMARK score of 102 in the video category, the highest among all smartphones at the time of launch. Xiaomi also released an overseas version of this smartphone, Mi Note 10, in Spain in November 2019.

According to Canalys, Redmi Note 7 was the best-selling smartphone model among all models made by Chinese companies in terms of global shipments in Q3 2019. Xiaomi launched Redmi Note 8 and Redmi Note 8 Pro in August 2019, Redmi 8A and Redmi K20 Pro Premium Edition in September 2019, and Redmi 8 in October 2019.

The average selling price (“ASP”) of Xiaomi’s smartphones in mainland China continued to increase in Q3 2019, achieving year-over-year growth of 4.6%. The ASP of Xiaomi smartphones in overseas markets recorded a quarter-over-quarter increase of 7.8% and a year-over-year decrease of 4.1% in Q3 2019. The decrease was primarily due to a different product mix compared to the third quarter of 2018.

The gross profit margin of Xiaomi’s smartphone segment further increased from 8.1% in the second quarter of 2019 to 9.0% in Q3 2019.

Xiaomi IoT and lifestyle products

In Q3 2019, the revenue of Xiaomi’s IoT and lifestyle products segment rose by 44.4% year-over-year to RMB15.6 billion.

Xiaomi’s smart TV business maintained its leading edge in both mainland China and overseas markets. In Q3 2019, global shipments of Xiaomi smart TVs reached 3.1 million units, representing a year-over-year growth of 59.8%.

According to All View Cloud (“AVC”), Xiaomi ranked 1st in terms of TV shipments in mainland China in Q3 2019, with a market share of 16.9%. With Xiaomi’s consistent efforts to expand Xiaomi smart TV business globally, Xiaomi ranked top five in terms of global TV shipments in Q3 2019 according to AVC.

Xiaomi further expanded Xiaomi’s product offering in the high-end segment and launched Mi TV 5 and Mi TV 5 Pro in November 2019. Mi TV 5 Pro utilizes a 4K quantum dot display panel that covers a 108% NTSC wide color gamut and comes with HDR10+ support and built-in MEMC technology, enabling a premium picture quality.

Xiaomi has positioned large home appliances as strategic components of Xiaomi’s AIoT strategy. Focused on cutting-edge innovation, superior design and interactive experiences, Xiaomi is dedicated to enhancing the connectivity and compatibility of the whole suite of Xiaomi’s smart home appliances.

Following the successful launch of Xiaomi’s air conditioners and washing machines, Xiaomi launched Mi Refrigerator in October 2019, further expanding Xiaomi’s spectrum of products in the large home appliances category.

In October 2019, Redmi introduced the RedmiBook 14 Ryzen Edition and Xiaomi introduced Mi Laptop 15 Pro, both of which enjoyed widespread popularity.

Following the success of Xiaomi’s Mi Band, Xiaomi launched Xiaomi’s new wearable product, Mi Watch, in November 2019. Equipped with an independent eSIM and supported by MIUI For Watch, Mi Watch is dedicated to bringing Xiaomi’s customers the ultimate user experience in both hardware and software.

Many of Xiaomi’s IoT products have been well received by the market. For example, according to AVC, for the nine months ended September 30, 2019, Xiaomi’s fresh air ventilator was the top fresh air ventilator in mainland China in terms of several measurement aspects, including online brand sales, online single-product sales volume and value, while Xiaomi’s Mi Water Purifier ranked top two in terms of online sales value.

Xiaomi’s AIoT products won multiple domestic and international awards. Xiaomi’s Mi AI Touchscreen Speaker won multiple design awards, including the International Design Excellence Award (IDEA), the Red Dot Design Award, and the Good Design Award.

Meanwhile, Xiaomi’s Mi Router Mesh received a 5-star recommendation in the China Mobile 2019 Smart Hardware Quality Report, and Xiaomi’s Mi Electric Scooter Pro won the Expert Imaging and Sound Association’s Best Product (Electric Vehicle) Award.

Xiaomi Internet services

In Q3 2019, Xiaomi’s user base continued to expand. The MAU of MIUI increased by 29.9% year-over-year to 291.6 million in September 2019. Xiaomi’s mainland China MAU of MIUI remained flat year-over-year in September 2019 at 112.8 million.

The MAU of Xiaomi’s smart TVs and Mi Box achieved 50.1% year-over-year growth, reaching 23.9 million in September 2019.

Revenue from Xiaomi’s internet services segment grew by 12.3% year-over-year to RMB5.3 billion in Q3 2019. Advertising revenue decreased by 9.0% year-over-year to RMB2.9 billion, which was mainly due to pre-installation revenue decreasing to RMB376.6 million from RMB825.4 million YoY. This decrease partly reflected a shift in advertiser preference for non-pre-installation advertising. Excluding preinstallation revenue, advertising revenue grew 6.9% year-over-year in Q3 2019.

In Q3 2019, Xiaomi continued to diversify Xiaomi’s advertiser base by expanding into more vertical industries, including financial services and small- and medium-sized enterprises, to develop a more robust and healthier advertising business.

Revenue from gaming increased by 26.0% year-over-year to RMB822.3 million in Q3 2019. Xiaomi’s other internet value-added services grew by 78.2% year-over-year to RMB1.6 billion, primarily as a result of the strong growth in revenue of Xiaomi’s fintech business and Youpin e-commerce platform.

In Q3 2019, Xiaomi launched MIUI 11, featuring a minimalistic design with efficient office and smart travel application suites. Combining the improvements in efficiency with the new optimized modern user interface design, MIUI 11 provides an all-rounded upgrade to Xiaomi’s users.

With Xiaomi’s continuous efforts to diversify Xiaomi’s internet services business, Xiaomi’s internet services revenue outside of advertising and gaming from mainland China smartphones, including those generated from the Youpin e-commerce platform, fintech business, TV internet services and overseas internet services, increased by 87.8% year-over-year and accounted for 37.2% of Xiaomi total internet services revenue in Q3 2019 .

In Q3 2019, the gross merchandise volume of Xiaomi’s Youpin e-commerce platform maintained a strong year-over-year growth primarily due to the expansion of Xiaomi’s product categories on the platform and the continued growth and diversification of Xiaomi’s user base.

In Q3 2019, the revenue from Xiaomi’s fintech business increased by 91.2% year-over-year to RMB1.0 billion. The increase was mainly due to the strong growth achieved in Xiaomi consumer loan business.

In Q3 2019, Xiaomi’s revenue from TV internet services continued to grow, driven by the increase in both subscription revenue and advertising revenue. In September 2019, the MAU of Xiaomi’s smart TVs and Mi Box reached 23.9 million, representing a year-over-year increase of 50.1%.

As of September 30, 2019, Xiaomi had more than 3.2 million paid subscribers, representing year-over-year growth of 68.8%.

Xiaomi’s AIoT Strategy

In Q3 2019, Xiaomi continued to execute Xiaomi’s “Smartphone + AIoT” dual-engine strategy and maintained Xiaomi’s leading position.

As of September 30, 2019, the number of connected IoT devices (excluding smartphones and laptops) on Xiaomi’s IoT platform reached approximately 213.2 million, representing a year-over-year increase of 62.0%.

The number of users who have five or more devices connected to Xiaomi’s IoT platform (excluding smartphones and laptops) increased to 3.5 million, representing a year-over-year increase of 78.7%.

In September 2019, Xiaomi’s AI assistant had 57.9 million MAU with a year-over-year increase of 68.6% and continued to be one of the most used AI voice interactive platforms in mainland China. Meanwhile, Xiaomi’s Mi Home app had 32.1 million MAU in September 2019, with 63.0% of these active users being non-Xiaomi smartphone users.

Xiaomi continued to strengthen the connectivity across devices on Xiaomi’s AIoT platform. Xiaomi smartphones, smart TVs, AI speakers, and smartwatches can all act as controlling hubs for Xiaomi’s AIoT platform.

Xiaomi Smartphones: Mi CC9 Pro, Mi Note 10

Mi CC9 Pro

Following the groundbreaking concept phone Mi MIX Alpha, Mi CC9 Pro sets another important milestone for the industry to become the world’s first mass-produced smartphone shipping a 108MP camera.

The 108MP main camera offers a 1/1.33″ large image sensor – twice as large as the mainstream 48MP cameras. It supports OIS and features an industry leading resolution of 12032 x 9024.

It also incorporates a 4-in-1 (1.6μm) Super Pixel with the latest RAW multi-frame noise reduction algorithm to capture rich detail, even in low-light conditions.

Mi CC9 Pro sports a penta camera setup that includes a 12MP telephoto camera, a 5MP telephoto camera, a 20MP ultra wide-angle camera, and a 2MP macro camera.

The 12MP telephoto camera supports 2x optical zoom with dual PD autofocus, while the 5MP telephoto camera supports 10x hybrid zoom. All cameras cover day-to-day needs for smartphone photography from landscape, portraits, close-up shots, and even for 1.5cm super macro photography.

A premium offering – the Mi CC9 Pro Premium Edition was also announced at launch. It comes with an 8P lens that produces images that are clearer and of higher definition. It also surged to the top of DxOMark camera rankings with an overall score of 121 and broke the record for video segment with a world’s highest score of 104.

On the hardware front, the Mi CC9 Pro dresses to impress with the flagship two-sided curved screen and a 6.47’’ 19.5:9 Full-HD Display. Adopting a COP sealing technology, Mi CC9 Pro has a 3.43mm chin bezel, making it the most narrow Xiaomi smartphone apart from the Mi MIX Alpha. Mi CC9 Pro also supports 30W fast charge, which brings its 5260mAh high-capacity battery to 100% under 65 minutes.

Mi CC9 Pro and Mi CC9 Pro Premium Edition will be priced at RMB 2799 and RMB 3499 respectively. Three color variants Aurora Green, Glacier White and Midnight Black will be available on official Xiaomi channels in Mainland China starting November 11, 2019.

Mi Note 10

Xiaomi also announced the return of its Mi Note series with Mi Note 10, the latest device of its premium flagship lineup.

Xiaomi’s Mi Note 10 encompasses five different lenses – a 108MP wide-angle lens, 5MP telephoto lens, 12MP telephoto lens, 20MP ultra wide-angle lens, and a macro lens. This setup enables a seamless zoom experience from 0.6x to 50x without compromising image quality.

With the Samsung ISOCELL Bright HMX 108MP sensor, Mi Note 10 features the highest resolution of any smartphone on the market – 12032 x 9024.

For the first time ever, the 108MP camera can produce billboard-level prints up to 4.24 meters high. The device offers a 1/1.33″ large image sensor that supports 4-in-1 pixel binning to capture more detail in low-light conditions, while the 4-axis OIS enables unmatched clarity.

Photography enthusiasts who look to produce the most natural looking portrait photos will be pleased with the Mi Note 10’s 12MP 2x telephoto lens at 50mm focal length, which is one of the most popular focal lengths used by professional portrait photographers. Under low light conditions, the 1.4μm large pixel size and dual PD autofocus allows for sharper and brighter portraits.

The 5MP 5x telephoto lens is also capable of 10x hybrid and 50x digital zoom to complete the epic zoom range. In addition, the lens is equipped with OIS and a f/2.0 aperture for better images under non-optimal lighting environments.

With its 117 degrees field of view, the 20MP ultra-wide angle lets users capture epic landscapes and large group photos without having to cut people out; while the macro lens offers autofocus for closeups images.

Also presented today is Redmi Note 8T, the latest smartphone to join the Redmi family. The device offers a 48 MP quad camera setup and features high-end specifications, starting from €179.

Mi Watch

Featuring a flagship 1.78’’ AMOLED square screen, Mi Watch offers an immersive viewing experience with a 326 PPi pixel density and an elegant four-side curved design.

Being the world’s first wearable to sport a Qualcomm®️ Snapdragon WearTM 3100, Mi Watch guarantees a robust device performance and low power consumption. The device also boasts independent speakers, NFC function, and supports WiFi and Bluetooth connection.

Equipped with a built-in six-axis sensor and a 3rd generation heart rate monitor (HRM) sensor, Mi Watch is able to precisely detect complex motion gestures and heart rate fluctuations during physical activities.

With these capabilities, Mi Watch offers up to 10 pro-sport modes such as outdoor running, outdoor biking, open water swimming, and mountain climbing. It also works with professional sports analytics provider FirstBeat to closely track users’ sleep quality, blood pressure levels, heart rate, and physical energy.

Mi Watch also comes with eSIM, a built-in chip that allows users to make phone calls and connect to the internet effortlessly without inserting a physical nano-SIM. With such technology, users can either share the same phone number with their smartphone for seamless connectivity or have a new private number for the Mi Watch exclusively.

Adding on to all these flagship features, Mi Watch provides a revolutionary UI experience with the MIUI For Watch system, offering 100+ dial plate selections and 40+ of the most used apps for downloading. It also remains an open system for developers to create tremendous possibilities.

XiaoAi AI Assistant can be activated for users to easily use voice commands for music playback, phone calls, and navigation. When connected to the Xiaomi AIoT system, Mi Watch is capable of operating thousands of Xiaomi smart home appliances.

Along with the standard Mi Watch, Mi Watch Special Edition was also announced, with a limited offering of 30,000 units worldwide.

Featuring a major upgrade to blue sapphire glass as the screen material, the Mi Watch Special Edition adds a classy, aesthetic touch to your day-to-day look. The package also comes with an in-box magnetic charger, an adapter, laser-printed limited product code, suede cleaning cloth, certification for limited collection, and a personalized nameplate.

Mi Watch will be available at RMB 1999 for the Black and Silver color variants. Pre-orders start on November 5 via official Xiaomi channels in Mainland China. Mi Watch Special Edition will be priced at RMB 2999 and has a limited number of 30,000 units worldwide, pre-orders will start around mid-December.

Mi TV 5

The newly released Mi TV 5 series features a 1.8mm ultra-narrow metal bezel and a 5.9mm slim body, delivering a compact, futuristic design that is perfectly fit for a modern home.

On the performance front, Mi TV 5 series adopts a flagship 12nm T972 chip that is jointly developed by Xiaomi and Amlogic.

It has a core frequency of up to 1.9GHz, allowing a 63% improvement of overall performance compared to its predecessor, while concurrently supporting 8K content decoding. For storage, Mi TV 5 and Mi TV 5 Pro both provide industry-leading large memory capacity of 3GB+32GB and 4GB+64GB respectively.

Mi TV 5 Pro boasts a 4K quantum dot TV panel and an amazing 108% NTSC color spectrum compared to the industry standard of 72%.

It also meets one of the most outstanding HDR standards – HDR 10+ to provide a stunning graphic display for both game players and Blu-ray lovers. MEMC technology is also adopted to ensures a smooth and high-definition motion picture playback.

All Mi TV 5 variants are enabled with a Far-field Voice Recognition technology that allows users to wake theXiaoAi AI Assistant from a distance without the need of a remote control. Hence, it only takes a simple voice command to conduct film searching, weather checking, or smart device operations.

Built-in microphones are located right in the middle of the bottom frame and are on stand-by 24 hours a day, ensuring the Mi TV 5’s “XiaoAi AI speaker” is ready even during screen-saver mode.

Mi TV 5 Pro 55’’, 65’’ and 75’’ variants will be priced at RMB 3699, RMB 4999, and RMB 9999 while Mi TV 5 55’’, 65’’, 75’’ priced at RMB 2999, RMB 3999, and RMB 7999 respectively. Pre-orders start at 18:00 China time on November 5, and sales on official Xiaomi channels in China will start on November 11.