Xiaomi’s Strong FY2024 Performance: A Breakout Year in Smartphones and EVs
- GordonGekko
- Mar 19
- 4 min read
Xiaomi Corporation has reported its financial results for the fiscal year 2024, showcasing significant growth across key business verticals, including smartphones, IoT, and its newly launched smart electric vehicle (EV) division.
The company’s expansion strategy, commitment to premiumization, and strong execution have propelled its financials to new heights. Below, we analyze Xiaomi’s latest financial results, key performance drivers, and future outlook.
Financial Performance: Record Revenue and Profit Growth
Annual and Q4 Highlights
Total Revenue: RMB 365.9 billion (+35.0% YoY)
Adjusted Net Profit: RMB 27.2 billion (+41.3% YoY)
Gross Profit Margin: 20.9% (up from 17.0% in 2023)
Q4 Revenue: RMB 109.0 billion (+48.8% YoY)
Q4 Adjusted Net Profit: RMB 8.3 billion (+69.4% YoY)
Xiaomi’s revenue growth was primarily driven by robust smartphone sales, the expansion of IoT & lifestyle products, and the successful entry into the smart EV market. The company’s strategic focus on premiumization and AI-driven innovations has further strengthened its profitability.
Key Business Segments Driving Growth
1. Smartphones: Maintaining Global Leadership
Global Smartphone Shipments: 168.6 million units (+15.7% YoY)
Revenue: RMB 191.8 billion (+21.8% YoY)
Market Share: 13.8% (Ranked No.3 globally for the 18th consecutive quarter)
Premium Smartphone Sales (≥ RMB 3,000): Increased to 23.3% of total sales in China
Despite a competitive global smartphone landscape, Xiaomi has strengthened its position in key markets. The company gained market share in China, with a 17.8% YoY growth in shipments, outpacing competitors like Apple (-17.3%) and OPPO (-2.7%). Xiaomi’s premiumization strategy, including the launch of the Xiaomi 15 Ultra, has contributed to an increase in its Average Selling Price (ASP).
2. IoT and Lifestyle Products: Expanding the AIoT Ecosystem
Revenue: RMB 104.1 billion (+30.0% YoY) – a record high
Connected Devices (excluding smartphones, tablets, laptops): 904.6 million units
Smart Home Appliances Growth:
Air Conditioner shipments: +50% YoY
Refrigerator shipments: +30% YoY
Washing machine shipments: +45% YoY
Global Tablet Shipments: +73.1% YoY, ranking No.5 worldwide
Wearable Bands: Ranked No.2 globally with 15.2% market share
Xiaomi continues to lead in the AIoT space, with its ecosystem of smart home devices and wearables driving significant revenue. The company’s HyperOS and Hyper AI technologies have further enhanced device connectivity and user experience.
3. Internet Services: Growing Digital Revenue
Revenue: RMB 34.1 billion (+13.3% YoY)
Advertising Revenue: RMB 24.7 billion (+20.5% YoY)
Overseas Internet Services Revenue: +30.0% YoY (32.2% of total internet revenue)
Internet services remain a high-margin segment for Xiaomi, with increasing monetization of its massive 700+ million global monthly active users (MAUs). The expansion of Xiaomi’s advertising and gaming services contributed to double-digit growth.
4. Smart Electric Vehicles (EVs): A Breakout Year
Revenue: RMB 32.8 billion (First year of EV operations)
Deliveries: 136,854 vehicles in 2024
Projected 2025 Deliveries: 350,000 vehicles
Expansion: 200 EV sales centers in China, targeting 220 by early 2025
Launch of Xiaomi SU7 Ultra (Feb 2025)
Xiaomi’s entry into the EV market has been a resounding success. The SU7 sedan, launched in early 2024, saw strong demand, with pre-orders reaching 19,000 units in just three days. The company is set to expand its EV product lineup in 2025 with the introduction of Xiaomi YU7.
Key Growth Drivers
1. Premiumization Strategy Paying Off
Xiaomi’s shift towards high-end smartphones and home appliances is yielding higher margins. The ASP for smartphones reached RMB 1,138, the highest in Xiaomi’s history. Additionally, premium smartphone sales in China surged to 23.3% of total shipments, indicating a successful move upmarket.
2. AI and Smart Home Expansion
The company’s AI-powered HyperOS ecosystem continues to integrate seamlessly across smartphones, IoT devices, and smart EVs. Xiaomi’s Hyper AI assistant has further improved the user experience across its devices.
3. EV Business Scaling Rapidly
Xiaomi’s Human x Car x Home strategy is driving growth in EVs. With over 136,000 deliveries in the first year, Xiaomi is poised to become a major player in China’s smart EV market, challenging incumbents like Tesla and NIO.
4. Global Expansion and Retail Growth
Xiaomi plans to open 10,000 Mi Home stores overseas in the next five years.
The company’s EV network is rapidly expanding, with 220 sales centers expected by early 2025
Financial Health and Investments
1. Strong Profitability
Gross Profit Margin: 20.9% (up from 17.0% in 2023)
Internet Services Gross Margin: 76.6% – the highest across all segments
Smartphone x AIoT Gross Margin: 21.2%
2. R&D and AI Investments
2024 R&D Expenditure: RMB 24.1 billion (+26.2% YoY)
Planned R&D Investment (2021-2025): RMB 100 billion
AI advancements in Xiaomi HyperOS 2, Hyper AI, and smart driving technologies.
3. Cash Reserves
Xiaomi’s cash reserves exceed RMB 141.0 billion, providing ample liquidity for future expansion.
Outlook for 2025: Continued Growth Across All Segments
Xiaomi is positioned for sustained growth in 2025, driven by:
Smartphone Leadership: Expansion in premium smartphones and further market share gains in China.
IoT & AIoT Growth: Continued dominance in smart home appliances and wearables.
EV Expansion: Scaling up deliveries to 350,000 units with new models like YU7.
AI & Software Innovation: Further integration of HyperOS, Hyper AI, and smart assistant technologies.
Retail Expansion: 10,000 overseas stores planned and deeper market penetration in key global markets.
Xiaomi’s focus on innovation, premiumization, and global expansion will be the key catalysts for its next phase of growth. The company’s ability to scale its EV business while maintaining leadership in smartphones and AIoT makes it a formidable player in the tech ecosystem.
Final Thoughts
Xiaomi’s FY2024 results highlight a transformative year, marking its strongest performance to date. The company has successfully diversified beyond smartphones, with its EV and AI businesses becoming key growth pillars. With a solid foundation in place, Xiaomi’s outlook for 2025 remains highly optimistic.
Disclaimer: This article is for educational and informational purposes only and should not be considered financial or investment advice. All investments carry risks, including potential capital loss. Readers should conduct their own research and consult a qualified financial professional before making any investment decisions. The author and publisher are not responsible for any financial losses incurred based on the information provided.
